Good morning and welcome to Saturday. It is 46 degrees and sunny cloudy in Upstate NY. Its time to get outdoors today and tomorrow. I will be working on the vegetable garden, swimming, and generally futzing about. May you joyously futz around too.
What can be said about the American stock market.
It is presently at a high not seen in years. April is traditionally a good month and this April produced amazing results. Q1 reports have been better than expected in the majority of cases and Q1 season is not quite over. Some talking investment heads will admit that the indexes are perched a little high and that some stocks are overbought. Still money is cheap with imperceptible interest rates thanks to the Fed and that is an enticement designed to keep everything happy and fluffy. And its working. The state of fear measured by the volatility index is still low as well. All this seems to be pointing toward a continued rise in the indexes. 13,000 in the DOW is within reach and that is amazing.
When the earnings season ends in May, investors will have to grapple with the Main Street reports. Here the issue of unemployment and a tragically bad job market takes center stage along with the weak housing market and a political system out of control. When that happens, who knows, maybe the market can move sideways, maybe it goes through another correction. Its all a crap shoot.
Reuters: Sell in May and go away? Not so fast
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