Stocks up 4th week in a row!
Why, yes they are! How observant.
The Pubbies have done an exceptional job at manipulating the market for election gains. Clinton did it and now GWB got his playbook in order.
My guess is next week will see at least a 1000 point gain, as the obvious takes place. Pubbies will sweep the election and Sir Prints-a-lot will cut rates at least 50.
Shorts will buy, mutual funds will buy, Jose Six Pack will buy, Granny will buy (because fixed income is zero), and we are back to shoe-shine boys giving stock tips - ala 1999.
The worst econ news in quite some time passed in the last month, and the stocks have rallied. Earnings suck, valuations are stratospheric, unemployment is up, and the dollar is tanking - all conditions which make buying stocks at any price a real wonderment.
When this rally burns out, it is going to be fugly. Guess who will not be in any position of power when it does? The same party that was not in power from back in the 20s. Guess who gets to take the blame again?
Be careful what you wish for. The S&P has a P/E of 49, and no bull market has ever, EVER, started in any place on earth, at any time with a P/E of that level. Most bull markets have topped below that level.
Have fun.