The US economy is roaring. Corporate profits are roaring. There is no indication that a 2008 recession is on the horizon. All indications show continued US growth.
There are a few headwinds that have developed over the last few weeks that will undoubtedly raise volatility and prevent US stocks from making all time highs.
First, Italian politics been catching headlines. This has caused a spike in Italy’s bond yields. The 10 year spiked about 150 basis points over the past month.
Political issues in Argentina and Turkey are also adding to investor fear.
This has caused a flight into the US dollar and US treasuries, which is seen as a safe place to park money from financial turmoil.
Additionally, the Trump administration has gone off the rails with tariffs. These headlines of a “Trade War” will certainly not help US stocks. However, I still view a significant trade war as a remote possibility.
Despite all these obstacles, US stocks have been pressing up against major resistance. I view this as a bullish indication that US stocks are wanting to press up and challenge their all time highs. I am still a buyer on market corrections.