By Aaron Task
Recessions: Since WWII, every U.S. recession has begun with job losses. Today, the economy is adding about 200,000 jobs per month.
“Jobs are up, wages are up, corporate earnings are strong, and consumer confidence is up,” Alex said. “There’s no recession in the offing.”
Financial Crisis: “Banks are healthy, cash reserves are up, bank profits are up.”
Financials is the best-performing sector since the election. In short, we “don’t seem to be on the edge” of a financial crisis.
Extreme Valuations and Sentiment: U.S. Stock valuations are “definitely more expensive than average,” but “maybe the stock market deserves a higher [than average] valuation” given rock-bottom interest rates, low energy prices, low inflation, an improving economy and rising corporate profits.
On the sentiment front, Alex noted the vast majority of financial commentary these days is about the risks in stocks vs. the opportunities.
More importantly, the amount of money going into bond funds since the market bottom in 2009 has dwarfed the amount going into stock funds: $1.5 trillion vs. just $256 billion. That’s a sign individual investors still haven’t embraced the bull market.
Source: Investment U
http://dailytradealert.com/2017/03/18/a ... t-from-it/
