Sometimes, I will take a look at technical analysis. That is the type of analysis that uses stock prices to identify meaningful patterns on a graph. While it is interesting, it demonstrates meaningless precision. To me, I consider it voodoo analysis. However, when both schools suggest the same thing, it is worth paying attention.
Take a look at this technical view of the stock market:
That doesn’t mean there won’t be corrections. There was a 3% correction in April. And, don’t forget, two out of every three years experience a correction of 10% or more. Corrections are routine and actually good for the stock market. Long term, I remain much more concerned about a “heart attack” in the derivatives market than the business cycle. So, let’s just enjoy the short term!