The U.S. stock indexes this week hit more record highs. The charts remain fully bullish, both near-term and long-term, to suggest still more gains and no early clues of market tops being close at hand. Importantly, the fundamental picture for the U.S. stock market has been and is likely to continue to favor the bullish camp. One major reason for the big gains in the stock market is that equities have been “the only game in town” for investors the past several years. With inflation being at historically very low levels, such has put a damper on other markets’ returns. Low inflation keeps commodity market prices tamped down and also presses U.S. Treasury yields down (prices up). As long as global inflationary pressures remain very low—including the potential for the very serious problem of price deflation—owning shares will likely continue to be the main investment asset for most of the investing public. Stay tuned!–Jim
