The Most Unloved Bull Market

With the indices well over 100% above March 2009 lows,  this market continues to rise despite the skepticism and pessimism about the future for local and global economies.  I am among those that are skeptical and still somewhat, but less pessimistic about the economic future.  There are still too many issues for me to be fully invested in the stock market.   Among them are:

Fed policy.  I can't imagine a good ending to the various QE policies implemented by the Fed.  Eventually, interest rates will rise and refinancing all the debt will be painful.  In addition, higher inflation is already here despite government revisions to the calculations that seem to mask the impact on consumers expenses.

EU sovereign debt issues.  Since early fall, the EU sovereign debt issues have not been an issue, not because it is no longer a problem.    The US fiscal cliff was just a more prominent issue, until it was partially resolved.  However, I expect European debt issues to move to the forefront again.

Government spending.  I don't see an end to the growth in government spending.   This will be a continual battle for the next four years, which will continue to be a drag on the economy.

Since I don't want to miss out on the rally, I continue to trickle a small amount of funds into stocks.  At the same time, I am trying to sell into the rally, especially the company stock options that will be expiring over the next four years.

For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

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