Failed IPOs (Initial Public Offerings), impeachment inquiry, attack on Saudi Arabian oil facility, delayed trade talks, and more, yet the U.S. stock market is near all-time highs. If this news background can’t kill this bull market, what can? Certainly, something eventually will, but not now. Interest rates are low, our economy is still growing, companies are producing record profits, what’s not to like?
Another part of the explanation for stock market resilience is liquidity. The industrialized world is awash in it. Central banks in major markets are providing more and more funds. These seek a home and a return. So beyond good fundamentals, more dollars also help keep prices up.
We are only a few weeks away from earnings season. Most companies will report third quarter results from the middle of October through early November. Investors will then get a good look at current business conditions. We have every reason to believe these are good. Stay steady, my friends.