Will The Stockmarket Breakout Sustain?

Is it possible we are in the early stages of an enormous secular stockmarket bull run?  We talk about this continually in Chat on StockBuz.

Since 1900, there have been four large stock market basing patterns which exceeded 12 years in length:

  • 1906 to 1924—18 years
  • 1929 to 1955—26 years
  • 1966 to 1982—16 years
  • 2000 to 2013—13 years

What prior breakouts had in common is investor behavior reflected an underlying distrust or disinterest and characterized by underinvestment in equities.  This results in a rebound that is relentless (emphasis mine), providing little opportunity to buy on pullbacks.  To put it bluntly, the distrust creates so many bears, that the inflow of bulls plows them over and with minimal pullback, they've forced to cover higher and higher...............fueling the market (my words - not in the article)

How and what caused those breakouts to sustain is a point of discussion in this Raymond James presentation  (courtesy of MarketFolly)

Also reviewed is the improving US economic data (albeit weak) the recent rise in interest rates and the decisions which lie ahead for the Federal Reserve so grab a cup of coffee, put the phone on silent and enjoy.

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