So this is what things can look like when our government lets us keep more of our money, and stops regulating everything we do.
The S&P 500 just completed a ninth straight year of gains, tying the all-time record set in 2000.
It just broke the record for number of days without a 5% pullback.
Relative strength, a measurement of speed and change of price movements, is at its highest level in 118 years. Higher than 1929. Higher than 2000. Higher than 2008.
This is a full blown, no-holes barred, parabolic market rally the likes we haven’t seen in quite a while, and there appears to be no end in sight.
Things can’t keep going this crazy forever. Remember that euphoric stages of a bull market typically occur toward the end of a cycle when all the naysayers and late to the party Charlies join in. And that’s exactly where we are right now. People who have not invested are pouring money into the U.S. stock market. According to one of the largest brokerage firms, Charles Schwab, cash levels are at their lowest levels EVER.
At Good Life we would actually like to see some sort of small, overdue pullback that lasts more than half an hour. Last Monday and Tuesday were a good start. Just give us a two or three percent correction that lasts about a week or two and we’ll shut up, we promise.
But until then we’ll continue to enjoy the rally and the profits, as we see nothing on the immediate horizon that says the end is anywhere in sight.
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