In the investing world, there is an old adage: bull markets run up a wall of worry. Well, we are certainly hearing a great deal about market corrections, bubbles and impending doom. In the meantime, the current bull market is in its sixth year. The fundamentals of the US economy look excellent!
Low interest rates, slow yet positive economic growth and an accommodative monetary policy all point towards continued upward momentum in the valuation of stocks. The latest sign of this trend is the Federal Reserve reducing its bond purchases without having to raise interest rates.
The only thing missing is a good correction to allow a stronger bull run. But that may come soon and when it does, the bubble babblers will tout how this is the start of the long predicted market crash! It is not. Today there is far less risky behavior in the market, stricter regulation in place and a Fed that is willing to step in if necessary.
