The “Heat Map”


Most of the time, the U.S. stock market looks to 3 factors to support its upward trend – let’s grade each of the factors:


 


CONSUMER SPENDING:  I grade this factor a C (neutral).


 


THE FED AND ITS POLICIES:  I grade this factor an A+ (extremely favorable) because the FED cannot do much more than it is doing to support the stock market and asset prices.


 


BUSINESS PROFITABILITY:  I upgraded this factor to an A (very favorable).   About 70% of the 500 largest public companies beat the estimates for first quarter profits – this is a very positive development and supports higher stock prices in the future. 

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