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The Stock Market: Easy Version

The Narrative and Market Signals: BFF

There are many factors to account for the sustained rise in US equities chief among them:

·     Rising corporate profits

·     Easy money

Thus far, concerns about easy money and how it has been provided (activist US central bank, government fiscal spending) have not shown up in negative long-term market signals. Nor have concerns on numerous other levels (sociopolitical, economic, etc.)


Therefore:

·     The narrative – rising US equities

·     Market Signals – predominantly positive
 

Conclusion:

Until market signals express concern, the narrative holds.

 

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