Morning Report Friday 21 March 2014
This is without doubt the question I get asked the most frequently on a daily, weekly, monthly monthly basis. There is a whole industry of scare mongering investors with doom and gloom newsletters. For some reason, people want to read about an impending crash much more than markets being solid and appreciating in the order of 10% over the coming 12 months.Please see our Market Matters video update – Doom & Gloom
Let’s look at a few contributing factors to both my view and the doomsday merchants:
US equities have been in a bull market for 5 years, rallying approximately 300% to all-time highs from panicked GFC lows - see chart 1.
Generally, US credit cycles last 5-8 years, hence, my continued belief that the current equities bull market is maturing, but not yet finished.
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