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The Stock Market: Easy Version
The Narrative and Market Signals: BFF
There are many factors to account for the sustained rise in US equities chief among them:
· Rising corporate profits
· Easy money
Thus far, concerns about easy money and how it has been provided (activist US central bank, government fiscal spending) have not shown up in negative long-term market signals. Nor have concerns on numerous other levels (sociopolitical, economic, etc.)
Therefore:
· The narrative – rising US equities
· Market Signals – predominantly positive
Conclusion:Until market signals express concern, the narrative holds.
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