I was totally frustrated yesterday afternoon as I watched the dysfunctional political system. This play by play account of useless negotiations over laws and expenditures that have already passed and been spent seems like a huge waste of time. I am most disgusted with the American voter that put these guys in office in the first place.
Looks like Halloween is arriving early this month and October volatility is in place. Over these last 15 years, investors have been whipsawed and the headlines have done nothing but send them down the wrong path. Most money managers are still looking for the Black Swans, but I am looking for sunshine.
Consumer sentiment has a direct effect on the markets. We have spent almost six years with consumer sentiment under the “80” level. This is a rare occurrence over the last 50 years and the results of this fear have produced a massive bull market.
- The S&P is up 2189% since 1974 and up 1,305% since 1982.
- Midcap companies that are measured by the S&P 400 are up 3281% since 1982.
- For 2014 S&P 500 earnings expectation of 112.94, which is up 11.3% for this year, and another 10.1% increase in 2015 to 135.40
Corporations are in the best financial condition since the seventies. The economy even lackluster is improving. So yes, I am bullish but I always am aware of risk and manage to it. I would enjoy a pullback here so I can put more money to work but the herd-sync may take a different turn.