As the Middle East burns, Bahrain shoots and Iran clubs the stock market is on fire. The combination of tepid (at best) economic data is music to investors ears. The key is to get enough growth to at least maintain out steady slog through the mud without falling back, but not enough for Bernanke and the Fed to cut off the spigot of Quantitative Easing. Stocks will keep rising until the Fed stops the quantitative easing programs and earnings peak, which I expect around mid-year… then watch out!
Regards – Keith Springer