With the latest rise in stocks, to fresh highs not seen in years, it begs the question:
Are stock markets seeing something in the near future?
Equity markets always look ahead 6-12-18 months and present that assessment to us on a rolling basis. If the S&P 500 index is reaching up towards 1600 in April, that must say something about the future.
What do you think new highs foreshadow?
Here are your choices. You can choose more than one. --
- US GDP in 2013 and 2014 will grow above +3% and maybe near +4%.
- Quantitative Easing is going to remain in play and be potent. Even if the US tapers down its bond buying, Japan and Europe step up to the plate.
- A “Grand Bargain” will be made in Washington DC.
- Earnings are Going to Ramp Up as Expected in 2H and in 2014
- The Global Economy is soon to surge ahead. Once again.
- Valuation multiples are going to expand. Optimism rules.
- Overstretched valuations reign in this market.
- This is a short-term momentum bubble. It will correct shortly.
- There is no ‘new’ news in fresh stock market highs. I don’t believe market highs foreshadow changes in fundamentals right now.
Join this weekend’s conversation! Let us know what you think.
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