Making New Highs...Now What?
Investors are finally understanding the Fed's intentions with QE and that it will only be removed when the economy is healthy enough to stand on its own two feet. Also it will bring about higher bond rates, which begets bond fund losses, which begets an even more attractive landscape for stocks.
Add these two things up and you understand why stocks are once again pushing the all time highs up at 1687. I have little doubt we will touch that mark, but what happens afterwards is the greater mystery.
So let's discuss the options of what happens next.
1) Stocks press through 1687 to new highs at 1700 or above.
2) Stocks stall out at 1687 and consolidation ensues. But long term bull market still intact.
3) Rally running on fumes and next bear market soon on the way.
Take your pick from above and explain your rationale in the comments section below.
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