Yesterday was a rather unique day. Besides the 421 point rally in the Industrials, we saw a decoupling of the broader market from oil, which fell another 3.5%. Apparently the promise of continued low rates trumps worries about deflation and slowing growth, signaled by falling energy prices.
Between Wednesday and Thursday the S&P climbed nearly 4.5%, erasing most of the losses from last week. The S&P sits within striking distance of a new high and Dow 18,000 party hats are making another appearance.
There are a lot of reasons to remain bullish on stocks. We're in a seasonally strong period and the US economy currently has more momentum than at any other point during this recovery (GDP has been 3.5% or higher in four of the last five quarters). We remain in mid-cycle expansion with an accommodative central bank that is in no rush to apply the brakes. Corporate profits are at all ... Log in or subscribe to continue reading.