Being bearish seems wrong

I’m not going to write too much trying to convince or prove things in this post, but just summarise what I think.

With all the bad news around ISIS, Ukraine/Russia and assumptions about the Fed reversing its interest rate stance, to how oil, gold and currencies are reacting, equity markets should be tanking, but they are not. Instead, it looks very bullish.

Ebola and any other reason was behind markets falling 10-12% recently but alas they rebounded soon after, and to new highs. Geez, it looks bullish.

Bears were recently rejoicing again with many still calling for bubbles and crashes but got caught being short again. Yep, it still looks bullish.

But, don’t back up the truck as any rise in these equity markets won’t be rooted from a base of cheap valuations but it’ll be based on capital flows, momentum and on those who have missed out and need to catch up.

This market could rise sharply for a couple more years and the S&P 500 may not get close to testing 1,800 in that period.

So there!

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