We have a launching pad in place for more acceleration. Going all the way back to 1928, the current bull market ranks as the ninth longest ever. Even more impressive is the fact that of the nine bull markets that lasted longer, none saw a gain of 100% during their first three years. Based on the history of prior bulls that have hit the three year mark, year four has also been positive.
Too far too fast? Perhaps.
Fundamentalists will argue that world debt should be dragging the markets down, and Spain is teetering on collapsing the entire EU, whose economy is larger than the U.S.
Many of the world banks should have collapsed by now, due to their tremendous and dangerous leverage in the derivatives markets, but again, the money masters won't allow that, otherwise, they wouldn't be able to continue to siphon billions from their precious system.
And, of course, we have an election year, and the money printers are hard at work, taking direct orders to flood the markets to ensure the waters stay calm, at least until the election is over. Just ask the Israeli and Chinese Prime Ministers what was whispered in their ears.
These are just my opinons, but, RMI, if you sometimes wonder why the markets seem to be behaving irrationally, keep these in mind.
