The stock market is hitting record highs -- YEA! Is it time to break out the champagne? No, but you can always celebrate NOT hitting record lows. But, are these record highs really record highs? No, not on a real inflation-adjusted basis! Take a look at this graph:
Readers know I am not a fan of "technical analysis" which relies on graphical relationships to study the market. To me, it is Presbyterian predestination applied to investing. It should be required that such graphs be labeled "past relationships are no guaranty of future relationships."
Still, there is something interesting in this graph. You'll note on the right side that the Dow has broken thru the resistance level rather decisively on the third attempt. This strongly suggests to me that the bull market still has room to run. I hope so, don't you?
