The U.S. Stock market continues to crank higher. As it approaches recent highs, many investors ask, “can it break through and post new records?” Supporting the most recent gains has been the Federal Reserve signaling that further rate hikes are on hold. Low interest rates support higher values for all manor of assets, bonds, real estate, art, and of course the value of companies.
Money flows into the stock market have most recently been very strong. Merger activity is picking up along with many new companies going public. Animal spirits are alive and well. Expect more; the only caveat is the first quarter earnings season coming up. It is just around the corner. Each company better meet expectations or watch out. Investors can be quick and brutal in punishing poor performance. So, can stocks break out to higher highs? We are not sure. We are watching, carefully.
The Lonely Bull