Here is What a Good Economy Looks Like!

The most hated bull market ever! Sit back and just enjoy it!

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Summary:

  1. The overall global economy is good. Corporate revenues and profits are strong.
  2. Worldwide events have caused spikes in volatility but the market keeps climbing.
  3. Tax reductions have yet to be really felt yet.
  4. Trump has been good for business and the market.
  5. Everyone benefits in one way or another as the “pie” gets bigger.

This bull stock market has been the most hated ever! The above chart shows the S&P 500 Index plotted against a measure of anxiety. The anxiety measurement is the VIX index divided by the 10 year treasury yield. Notice the spikes, or lack of spikes for geopolitical events that have taken place. 

So even with the background noise of the 10 year treasury rising above 3%, North Korea, inflation, Trump tariff’s, China and other distractions we are all making money if we have invested wisely.

The reason for this is simple, the economy is pretty strong AND corporate profits are rising. See the chart below for corporate profits.

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