The famous Canadian (but US-based) economist J.K.Galbraith once told us that “in economics, the majority is always wrong.” It was an exaggeration but there’s a lot of truth in his generalisation, which is why I like it when the views on whether stocks go higher are split, as they are now.
Clearly, the US market is optimistic, with the indices tracking higher most days lately, despite a huge rebound since December 24. However, many might not know that since the mid-term elections in November last year, the S&P 500 is up a mere 1.3%.
That was because global stock markets went through a horror December quarter. Christmas Eve put an end to that excessive, though understandable, negativity.