The Stock Market is Looking Better

The Stock Market is Looking Better But…
Caution is Still Advised.


Hello Gaugers. It was a good and profitable week for those long in the market these past 5 and even 9 days since the beginning of the year.

I have read one article and commentary after another stating that we’re surely in the beginning of a new bull market. Here are just a few of the comments (and charts) I have seen that state the S&P is behaving better and “this time is different”… But is it?

  • January is historically the best month during a pre-election year for stocks, up 4.1% on average. This bodes well for the whole year.


  • Inflationary pressures have subsided. Look at Gasoline, the U.S. Dollar and interest rates. They are all giving the stock market some wind at its back (however, the equal weighted S&P has not gone anywhere – see chart below).