How investors will know a real rally’s on the way

An expanding economy, a record string of double-digit quarterly earnings increases, and historically low bond rates add up to a perfect formula for rising stock prices, right? Well, not so far this year. Through Friday’s close, the Wilshire 5000, the broadest of all market measures, had eked out only a 4.3 percent gain so far this year.



On the positive side, we expect a soft landing for the economy, but we believe it’s just too early for investors to be sure. We don’t believe the interim downside risk for the stock market is large because the U.S. economy, the banking system and corporate finances are healthy.

suntimes