Now that the small caps have broken out to new all time highs there’s no longer any doubt at all that the perma bears got it wrong again. We are in a long term bull market and currently in a consolidation after the big run post election. The Nasdaq might make higher highs as well but I don’t think we are quite ready for the entire market to deliver a big sustained move just yet. My guess is it won’t be until after the next rate hike before a sustained breakout can begin. I’m still seeing people calling for a market crash due to rising interest rates. Apparently these people don’t have time to study history. Markets always rise during the initial phase of a rate hiking cycle. Maybe once rates reach 5-7% we might have to become concerned, but not at 3%.
If you’re still listening to an analyst telling you to short the market, run far and fast in the other direction. The proper strategy in a bull market is to buy dips not sell short.