Earnings are anticipated to develop greater than 15 % this yr. The upcoming earnings season had higher be rattling optimistic. I am not speaking about simply earnings beats. I am speaking about extra buybacks AND extra capital funding. The entire enchilada.
The issue is we’re in uncharted waters as a result of the transfer to Dow 25Ok has come so quick. We not solely rallied going into the shut of the yr, the rally at the beginning of the yr has taken everybody abruptly, far surpassing the everyday first-day putting-money-to-work story.
The breadth has been notably spectacular. Every part is up. Large caps and small caps. Development and worth. Cyclicals and staples. The one sectors not collaborating are interest-rate delicate REITs and utilities, that are bond proxies.
Look, I’m not by nature a bear, however if you begin seeing the broader press point out the Dow at 25,000 — as we noticed Thursday — sit up and take discover.