Friday, September 11, 2020

Stock...

 This bull market might not be hated, but it still isn't trusted

  • The stock market hit new highs last week, and the history of market cycles suggests that the current bull market trend could continue for some time to come.
  • In terms of the business cycle, the US economy is out of recession and into an early cycle recovery.
  • In addition, the market continues to display characteristics of a secular bull market. Secular bull markets are prolonged super-cycles in which the market produces above average returns.
  • Factors supporting the secular thesis include de-equitization (the number of public stocks is declining), a highly accommodative monetary policy, and a weaker dollar.

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