I was watching CNBC nearly every other day, trying to catch the reason. Then I came across this table which is very telling. The table indicates the average earning percentage for companies. Comparing at 2 time frame. Results is, they are continuing to put up higher forecast.What it means is this: Back in April 1st, Q2 and Q3 forecast were 54% and 19.5%. However as the reopening economy are happening, companies came forward to update their forecast higher. You can see the latest update this week for Q2 and Q3 forecast were 62% and 23.7%. That's like telling the market after one month, my earning will grow even more about 8% in Q2 and 4.2% in Q3.That's a big change. US economy is thriving and is on the hawkish mode. I could see that most of analyst are two side of the camp. But one thing th

It's hard to believe. I'm convincing myself too. 1. Retail data will be higher month to month. $Wal-Mart(WMT)$results was good. You have Halloween then Christmas, on and on. 2. Infrastructure trillion dollar spending. No turning back on this. Government will pace spending to stir industrial and materials. 3. No inflation surprise, not a secret. Market don't like surprises. Everyone knows its already very high. But the impact to equity is not immediate. 4. Fund managers are loaded with cash. This is last last minute Christmas shopping. Some FOMO will kick in to buy and hold stocks. 5. Its has always been the time of the year, that market goes up. Supported by recent boost on higher profits guidance and the birth

Fear of rising inflation, but this week commodity prices are going down. Why? Let me attempt to make it simple. Transitory is the buzzword that is spoken regularly. This was months back after J. Powell said that inflation is going to be transitory. It means that inflation will be gradual and the prices that are going up will be temporary.CPI at 5% is reported recently, which is record high. The only time CPI is higher than 5% was back in Aug 2008. But wait. What happened in Sep 2008? It was the Lehman Brothers crash. Lehman was a symptom rather than the cause. Inflation was high in 2008 but the monetary policy was tight. Lehman suffered earlier from the housing bubble in 2003. Meaning, what really matters is liquidity. So as long as the rates stay low, the economy will have the opportunity