I’m back from a 2-week trip to Asia and it’s almost like nothing has changed. Stocks are hitting all-time highs, so many people are trying to be cute calling for a top and the gold bugs are angry. The difference is that now the Small-caps have finally broken out of a 10-month base to new all-time highs. This goes for the Small-cap Russell2000 Index, S&P Small-cap 600 Index and the Russell Micro-cap Index. These indexes have done nothing in almost a year. Can you imagine the nerve of some people to call the US Stock Market “Stretched” or “Too far too soon” (whatever that means), when some of the most important indexes are just now breaking out of 10-month bases? Too far too soon? They’ve gone no where for 10 months? Are you kidding me?
It’s like I’m talking to a wall sometimes. Too Stretched? Are we looking at the same market? [Read more…]