All told, the initial market bounce reflected a normalization of sentiment, but continuing market appreciation is more likely due to ongoing improvement in the fundamentals, both economic and corporate. Given that, a reversal of the trend would require either a wholesale turnabout by investors, from confident to scared, or a significant deterioration in the economy.
Right now, there are few signs of either.
Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by McMillan.