Monday, February 16, 2015

Major trend for equities is still higher

It's still a bull market. Sometimes one has to take a simplistic perspective and look at the charts and ask what direction is it moving in? How would a four year old look at this?

A four-year-old would look at the chart and say I'm not sure what it is, but it's moving from the lower left to the upper right. We try to look too deeply into things, sometimes it's better to look at what the major trend is. As we make new highs, the trend is still to the upside in equities.

Yes, there are reasons to be nervous about it [stock market rally] and yes there's a likelihood of a correction along the way, but anybody who has tried to sell the stock market has proven to be utterly and completely wrong.