Investors in the US have given up hunting for quality stocks and are simply riding the wave of upward momentum. The Feds near-zero interest rate turns five years old next month, the longest period without an increase in history. Coupled with more than $3 trillion of asset purchases and it's causing parts of the market to behave strangely. A Goldman Sachs index of companies with weaker balance sheets has rallied 42 percent this year, almost doubling the gain in a measure of more creditworthy firms. At some point we'll have to pay the price of this, said Michael Shaoul, CEO of Marketfield Asset Management. But it's a long way off. I would be very surprised if this bull market ended sooner than 18 months, and maybe it's 36 months, (VIEW LINK)
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