April 23, 2026
By Peter Bower
When the stock market goes up in the face of a myriad of concerns, we call it climbing a “wall of worry.” Right now, we have a gigantic one! That wall includes a war with an impact on the world’s energy supply. Next, there are credit quality worries in the financial system emanating from private credit providers. Then, there is AI (Artificial Intelligence) and all its potential impacts, known and unknown.
What else should investors worry about? Just add it to the list. So, why is the stock market doing so well? The most basic reason is that earnings growth looks like it will be fantastic. Interest rates are reasonable, and our economy is humming along. Investors are judging that the concerns listed above will not derail these positives.
Lately, we haven’t only been climbing the “wall of worry,” we’ve been sprinting up it. This reflects not just good prospects but also the fact that there is plenty of money around. Our financial system has excellent liquidity with money supply as measured by M2, growing 4.88 percent over the past year. This is excellent! Hopefully, this stock market run will continue, but every seasoned investor knows there will be setbacks. In the meantime, enjoy and stay steady my friends.
-The Lonely Bull
