Friday, April 20, 2007

Goldie's Still Smiling

The Goldilocks stock market is booming.

A record volume of short sales by pessimistic hedge funds and other bearish naysayers is getting absolutely crushed. This market is rising because earnings are once again outperforming consensus estimates—and because interest rates are low, stable, and unlikely to change any time in the foreseeable future.

The mild consumer price index is a big contributor to this outlook of stable interest rates.

A powerful one-two combo of rising profits (which are mother’s milk of the stock market) and steady interest rates is a wonderful prescription for soaring stocks and rising American wealth.

What’s that? Did someone say the greatest story never told?