My optimistic long-term view of U.S. stocks
S&P 400 MidCap Poised for New All Time Record Highs
As we have pointed out before, when the investment pyramid is inverted, as it is
now and the base or multitude of stocks are making new highs, the outlook for
stocks is likely to remain strong for some time to come. It is when the pyramid
is right side up and the last remnants of the Dow Jones Industrials or Generals
are making new highs, as represented by the Apex of the Pyramid that the market
is vulnerable to a collapse. Some have likened this to a battle with lower cap
issues or foot-soldiers, as represented by the very broadest indices that are
now healthy and progressing to new highs, that the bull market lifespan has
legs. The addition of Ben Bernanke to this bull market, has definitely given it
extra-long legs, ever since he was chosen to succeed Alan Greenspan.
As we reported days later: Since that day, there appears to have been a
sea-change in sentiment and we did rate Dr Bernanke very highly indeed as a
probable 10 and maybe even a Perfect 10 for now, and the market seems to have
endorsed our views over recent days with its relentless upward performance, as
we also reasoned that this unfolding Bernanke Bull move could run as long as 2
or 3 quarters hence.
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