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