Thursday, April 26, 2007

Things Are Good

It was truly an historic day on Wall Street yesterday as the Dow Jones Index rocketed to a record-breaking, first-ever, 13,000 close with a dramatic 136-point surge.

And the best part is that the gains extend beyond the Dow.

Stocks surged across the board with a 15-point gain by the S&P 500 and a 23-point gain in the Nasdaq. Record closings galore for transports, utilities, and the Wilshire 5000. The S&P 500 is nipping at the bit, just 30 points away from achieving its all-time high. Meanwhile, both the S&P 400 midcap index and the S&P 600 small cap index hit all-time highs. The New York Stock Exchange index is at an all time high, while stock-indexes in Germany, the UK, France and Italy are all approaching their own all time highs.

If I may, permit me to once again call this what it is—the greatest story never told.

We are in the midst of the longest uninterrupted bull market run in memory. We have record low tax rates on capital, a benign inflation rate, and recent economic releases suggesting the Goldilocks soft landing scenario remains very much in place.

But in the end, it all boils down to two simple things—two stock market locomotives that have created enormous, still untapped, value in equities. Viewers have heard me talk about them night after night:

High earnings, low interest rates.

Mark my words, it ain't over yet.

Will George W. Bush ever get any credit for this?