The Stock Market’s Bull Run is Not Over

One of my favorite economists to read every week is Brian Wesbury, Chief Economist for First Trust Portfolios and Brian is the most stock market bullish economist I read and he doesn’t believe that the stock market is in a bubble or euphoric. Why? First, the Fed has increased the M2 money supply by 25% in the last year. Second, profits are headed up and have further to go. Third, another very large fiscal “stimulus” package is working its way through Congress. Fourth, COVID cases, hospitalizations, and deaths are fall falling quickly. Brian believes the S&P 500 will end 2021 at 4200 and it closed last Friday at 3906.

Brian may be correct. But, his “worries” are the 10-year Treasury yield hitting 2% or higher, it ended last Friday at 1.34%. Second, is tax hikes, but he believes these will be put off until next year. I do hope Brian is right.