June 23, 2014
By Peter Bower
Twenty-one new highs for the S&P500; where are the naysayers now? “Sell in May and go away;” not this time. For over thirty-five years, I have heard all the reasons why things are really bad and the stock market is in fantasy land. Well, they have been proven wrong again. Yes, markets do go down, but 70% of the time, they go up. Why the bias? Growth and inflation give stock prices an upward bias and we are seeing signs of both.
The fundamentals for this market still look good. It’s not as cheap as it was, but it is far from being over-priced. The fundamentals include a growing economy, low interest rates and plenty of liquidity to fuel higher stock prices as well as economic activity. If anything, the fundamentals are getting better. Stay steady, my friends.
The Lonely Bull
