This article is not a bullish case for buying stocks today. In fact, I have deep and genuine concerns about the outlook for U.S. stocks and capital markets over the coming years. Thanks to an untested, extraordinary and relentlessly aggressive monetary policy experiment, assets worldwide including stocks have been catapulted to record highs at a time when the global economy remains sluggish, structurally imbalanced and burdened by excessive debt that has been accumulated over the course of several decades. In the process, stocks are now trading at a sizeable premium to historical norms. We have no idea how this ongoing situation will end. Hopefully it will resolve itself in an orderly way, but risks are high that it may all end badly with significant paper losses sustained in the process. And exactly when any such outcome might begin to unfold remains unknown. With all of this being said and despite having tripled in value over the last six years, a case can still be made that stocks are still attractively valued today. And it is this case among others that may help explain why stocks could continue to surge higher, perhaps meaningfully so, in the short term to intermediate term before finally entering into a meaningful descent once a new bear market finally awakens.
Please click on the link to read more of my article on Seeking Alpha.