The Stock Market is at a Major Fulcrum Point

You can't help having some emotional response to the inauguration yesterday - either pro or con.  The polls tell us that public opinion has never been so polarized, so how do you tell where we stand as a country, as a world, or as an individual?  I won't try to sway your opinion this morning, but I want to strongly emphasize that we are at a major fulcrum point.  Here is how the stock market measures today's conditions for these last four years, with particular interest on the progress since 3/9/2009.

That is history.  As for the next four years, we still have a monetary platform that will encourage growth and an undervalued stock market that has been historically positive for the future.  As always, our projection continues to be focused on our Asset Allocation Model based on the current conditions of Monetary, Psychology & Valuation.  Here is this week's status.

The bottom line is that this configuration is still bullish.  Remember, the stock market is reading tomorrow's headlines.

A while back I discussed that the rising Millennial Generation (those citizens in the age bracket of 18-35) has seized the reins from the Baby Boomers.  In my 4+ decade career, there have only been these major trends: 1) 1978-1994's disinflation, 2) the emergence of the Baby Boomers into the most productive part of their life cycle from 1985 to 1996, 3) the Technology Revolution of 1994-2000, 4) the New Flat World since 1998 (and continuing today), and now...5) the emergence of the powerful Millennial Generation (from 2012 until they get to be 45-55 years old).  

I cannot over-emphasize the importance of this fulcrum point.  So, despite any preconceived notions, we have to recognize and look for positives of what this will bring, and until our Asset Allocation Model tells us it's time to start looking for negative news, we'll continue to search out the positive aspects of this new trend.

Don Hays

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