Embrace the All-Time Highs
Where did all the pundits calling for a terrible October go?
We aren't completely surprised with the Federal Reserve's recent choice to cut rates, but we believe it was not only unnecessary, but unwarranted, as inflation is still well under the Fed's target and the economy continues to grow.
Among other things, the labor market is very healthy as we have said before. The LEI is high and - while it recently (very slightly) declined - we believe it is in a longer-term rising trend. And if you can believe it (my grammar teacher told me never to start a sentence with "and," oops), investors are finally getting the hint that everything is fine and the bull market is here to stay. They're 34% bullish per AAII's 10/30/2019 week-ending survey, and that's quite bullish when compared to how they've been recently. Just see our recent articles about it.
As we have said for months and months, there is no need to fear recession, and finally the pundits are starting to chime in. There is no need to fear these all-time highs. Not to repeat myself, but we said this would happen. Expect 2019 to finish a spectacular year in markets.
The end of the year is certainly looking to be far better than the end of 2018, assuming $6 trillion isn't knocked off global GDP. We expect markets to continue to grow throughout the rest of 2019 and 2020. While we can never predict a correction (and we won't ever pretend to) it is always smart for the investor to expect volatility to continue, and not be surprised if a quick correction occurs.
Happy November, and don't forget to embrace the all-time highs.