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Wall of Worry and Stealth Recoveries

by | May 21, 2013 | Articles

It always seems that the headlines blast about how bad things are yet during those times the stock market and the economy seem to improve with much less fanfare!  If you read the headlines you will see: the US political system appears to be crumbling under dysfunction, the Kim Dynasty in North Korea is about to lead the world into Nuclear disaster, China is asserting its military might to match its economic powers and they are choosing to do so over territory disputes that were forgotten by most Westerners decades ago, Putin seems to be leading Russia back towards a totalitarian regime, terrorists are constantly plotting against US (domestic and foreign grown), Syria and the rest of the Middle East are on the verge of dragging the US into another protracted war, Europe cannot seem to rise above various banking and sovereign debt crises and the US economy never creates enough jobs.

However, as in times past, while the media decries what is wrong, the economy continues to improve and for the last few weeks we have enjoyed record highs on both the DJIA and S&P 500 indices.  This scenario is typical of multi-year bull markets.  We experienced a very similar situation in the early 1980s and that bull market ran for about 17 years.  So, despite all these worries this may be the best time to invest in the equities.

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