George Leong: This has clearly been the year of the bull, as the bears enter their fifth year of hibernation during what has been a spectacular bull market run. For those who have constantly called for the stock market to burn up, it hasn’t happened.
The stock market clearly has its eyes on higher ground as we move into the final few weeks of the year. The advance has been much stronger than what I had initially expected back in January.
At that time, I thought the stock market would move higher, driven by the technology and financial stocks. My assessment was correct, but the size of the upside moves have been much bigger than I had imagined. The biggest surprise has been the ability of the stock market to hold and avoid any major correction. Bulls have fended off the majority of the bear uprising this year, with the biggest stock market correction being about six percent in the S&P 500.
Chart courtesy of www.StockCharts.com
Now, as the Dow Jones Industrial Average (INDEXDJX:.DJI) and S&P 500 (INDEXSP:.INX) move back toward their record highs, my view is that the stock market will likely move higher, driven by jobs creation and decent confidence levels.
Of course, with the jobs creation will come tapering by the Federal Reserve; but as long as the economy strengthens and jobs are created, investors should be happy.