New Heights Once Again
It is like driving down Highway 101 in California along the Pacific Ocean. Every time you round a curve and are astonished by the beauty of it all you think – that’s it, it can’t get better. But sure enough, you round another turn, and another, and another and it is magnificent. That’s what seems to be happening in this incredible bull run. We think – “that’s it, has to be a pullback” – and zip, nada. It goes up.
Right now there are several factors pushing the market up. First, the geopolitical rhetoric seems to now be ignored by the markets. Rightfully so as one person stated – if there’s a nuclear war and we are all wiped out then my investments don’t amount to anything, but if nothing happens I have to be in the market. Sort of makes sense and then again.
Second, there’s a lot of gains baked into the market based upon a new tax package that will stimulate the economy. Third, analysts are betting that this earnings season as it kicks off will be exceptionally good. Bank of America (BAC) reports Friday and we have it on our radar screen. Right now we plan to wait for dips, they will come and we hope to profit from them. We still think and hope that by the end of the year we can get to 1,000% returns. Where we are at now is very good and beats most (if not all) other investments.