I recently went to see a local production of “The Emperor's New Clothes” which is based off a short story by Hans Christian Anderson where two weavers promise an emperor a new suit of clothes that they say is invisible to those who are unfit for their positions, stupid or incompetent. When the emperor parades before his subjects in his new clothes, no one dares to say that they don't see anything for fear that they will be seen as unfit or stupid. Finally a child cries out, “But he isn't wearing anything at all!” and the weavers are exposed for the frauds that they are. Sadly this happens in real life and market gurus who get airtime on popular financial TV programs are there for entertainment, not for actual substance. Make sure that you know the difference.
Five Reasons The Bull Market Is Likely to Go Even Higher
There's been a lot of chatter recently. The “fat, ugly, bubble.” Is the “bull running out of steam?” Goldman strategists “are becoming more cautious about stock markets.”
At Runnymede, we are neither perma-bulls nor perma-bears. Rather our perspectives on the financial markets are based upon research, and our market outlook is reflected in the positioning of our clients' portfolios. In fact, we have been bullish on the market since July 2016. So where do we stand right now with the bull market having recently celebrated its eighth birthday? After much thought and careful reflection, here are five reasons why the bull market is likely to go higher.
Happy Birthday! Bull market in stocks turns 8.
The bull market in stocks celebrates its eighth birthday today. As it turns out, it's also my birthday. This got me thinking about what was happening in the world when I turned 8. In 1980, the Pac-Man arcade game was released. Camcorders and fax machines were cutting edge technology. A whole lot of people were watching TV to find out Who Shot JR? on the popular soap Dallas. The yearly inflation rate in the U.S. was 13.6%. The average cost of a new house was $68,700. The average cost of a new car was $13,650. I'll also mention that a (government subsidized) hot school lunch cost $0.65 and milk was $0.05. Okay, enough about me.