The renewal in the global economy is also helping. China hasn’t sunk into the economic abyss as some pundits have been predicting.
Its neighbor Japan is finally showing signs of economic growth following decades of doing little. Like the United States, Japan is spending its way to recovery.
The country’s first-quarter gross domestic product (GDP) growth expanded at an annualized 6.7%.
The massive spending by Prime Minister Shinzo Abe is panning out despite a rise in the sales tax.
Now while the evidence points to a better place now than five years ago, when the greed on Wall Street helped to drive the sub-prime credit crisis, we need to see sustained growth.
On the charts, the bull stock market is into its fifth year. The S&P 500 and DOW closed higher for the 12th time over the last 15 sessions as of June 6 and, in the process, traded at another record.
The bull stock market is heading for the longest run in more than eight decades.
The irony is that the current record is the bull market from 1994 to 2000—we all know happened to the stock market in 2000! (Just something to keep at the back of your mind.)
Chart courtesy of www.StockCharts.com
Along with the rally in the broader stock market, we are also seeing some renewed buying action with the growth element.