We look to Financials as a leader. We’ve never had a bull market in US Stocks without participation from the banks. They don’t necessarily need to be leading but they do need to participate. When we see the S&P Financials Index going out at new 10-year weekly closing highs, it’s hard to be bearish stocks as an asset class. This has been a big part of the aggressively bullish case I’ve been making since the summer of 2016. Meanwhile, the Broker Dealers Index is holding above its former all-time highs from 2007 and just beginning a new leg higher.
These are not bearish characteristics for stocks as an asset class. [Read more…]