1.Small Mid and Large Hit New Highs..
The Interminable Bull
U.S. Investment Policy Committee Notes
by CFRA
Aug. 22: In a classic example of ignoring the headlines and focusing on the bottom line, investors brushed aside seemingly damaging political outcomes and pushed the S&P 500 not only to a record duration, but also a new intraday, all-time high. The question du jour is now, “How long?”
We think bull markets don’t die of old age, they die of fright and are most afraid of recession. However, we don’t see a recession on the horizon, since the global economy is expected to maintain its upward growth trajectory, interest rates and inflation are projected to stay low, and S&P 500 profits are seen adding 10% in 2019 to the near-23% 2018 growth forecast.
Besides, history shows that after a trifecta of all-time highs for the S&P 500, MidCap 400, and SmallCap 600, the 500 was higher in price by an average of 4.8% six months later and up 77% of the time versus the average gain of 4.5%. During all rolling six-month periods, it was up 73% of the time.
–Sam Stovall