Stock Market: Back To Normal

(Drivebycuriosity) - Last week the Fed hiked her interest rates again, but the stock market didn`t blink, quite the opposite, the rally continued and US stocks reached new all-time highs on Friday. The S&P 500, the gauge for the US stock market, gained 19.52% YTD (not including dividends).

As I wrote before, interest rate hikes don`t stop the rally on the stock market, they are supporting it (driveby). The interest rate raise signals that the US economy is back to normal. They are a sign of optimism.

The global economy is getting stronger. Europe`s & Japan`s economies are prospering again, China & India are both growing more than 6% and other emerging economies even faster. In the US Obama´s eight-year war on business (high taxes & rising regulations) has ended. It seems that the new US administration is as business friendly as the Reagan administration, cancelling the trend to more regulation and cutting taxes. The US economy is already growing about 3% and the US retail sales are accelerating. I suppose that these trends will continue in 2018, fostering more gains on the stock market.


Welcome back normality!