- 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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