Bull Market Turns 17 Months Old

JC Parets
November 27, 2023

Think about it. We were told there was a crisis.

We were promised a recession that could come at any minute.

Inflation was going to destroy the financial system.

Instead, European Banks are making new 52-week highs.

I'm old enough to remember when European Banks used to sell off during a crisis.

So if this is a bear market or some kind of credit event situation, investors sure have a funny way of showing it.

We're seeing similar strength as breadth continues to expand in U.S. Stocks.

Here are U.S. Financials hitting new 8-month highs. This comes after finding support at those former resistance levels from before Covid.

This is all perfectly normal market behavior:

So as this bull market progresses, and participation among sectors and stocks keeps broadening out, we're already seeing the world's most important index just 2.6% from a new all-time high.

Think about it.

People are telling you this is a bubble.

But really, the Dow hasn't even broken out yet.

Like I told Liz Claman a couple of weeks ago, this bull market is just getting going.

Look at the sector returns since the last bear market came to an end in June of 2022.

Notice how it's only the most defensive sectors that are struggling to keep up. Everything else is up double digits.

In fact, the best performers - Technology, Industrials and Consumer Discretionary - are the sectors that we've historically seen leading in the early stages of a bull market.

What do you think people are so confused about?

Could you imagine not participating in this bull market because it upsets you that large-caps have been outperforming small-caps?

Or worse, some people aren't making money because they're upset that the yield of one bond is less than the yield of another bond.

True story.

Don't be one of those people.

I would encourage you to take the time to count how many stocks are going up and how many stocks are going down.

And if you don't want to do that, or don't have the time to do it, then find someone who does and read their notes.

Trust me.

Life is much easier that way.

All you have to do is count.

We discussed this all last week on our LIVE Conference Call. Here is everything you need to know as we close out the year and prepare for 2024.

Watch the replay and download all the slides.

JC

 

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