The continued strength in the stock market is the "talk of the town." The news of the day has us all tuned in to the latest status on the turmoil in the Middle East, the devastation following the earthquake in Japan, and of course, we have the occasional appearances by Nouriel, Bill and Meredith to try to throw cold water on any ember that tries to burst into flame.
But of course, we all know that the message below is more important.
As you can see above, Psychology has recently improved, and Monetary and Valuation continue to SCREAM BUY. Two super strong readings against one just slightly bearish reading brings glad bullish tidings.
Now, let's talk about the headlines that are hitting today's airwaves and see why the stock market has virtually ignored all of the ominous warnings by the pundits. To begin with, the most recent GDP figure was revised upward on Friday to 3.1%. Our Monetary Composite has been telling us for a long time to continue to expect upward revisions. The fuel being fed to the economy is huge, and even at M2, we can expect a continuation of this good economic performance.
The biggest boost to the new optimism in the segment of the US corporate environment that hires the most workers is small business. And this coming Friday, we get another update on the improving employment figures. The major improvement we are seeing is an evolution, and our Asset Allocation Model is telling us that we should continue to expect oustanding corporate news.
So Ladies and Gentlemen, keep the current news in context with what the markets are saying. At this time, the best forecaster of the market (tomorrow's news) is still telling us to have maximum exposure to growth.
To view today's complete Market Comment, click here.
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