Lots of Reason to Rally...

Glad that Chairman Powell adopted the “data dependent” language that only makes perfect sense. Softening PMI shows there is some weakness in a still growing economy; less reason to tighten. Technical factors could be playing out for rally, too. Like most other investment advisers, I’m busy rebalancing accounts INTO equities (after large Q4 drawdown) to get back to targets; supply/demand technical forces at work.

Negative factors like Apple weakness could be unique to them. Selling highest priced products on the planet that were previously affordable luxury goods. At $1,000+ for a cell phone, only the diehards bought in early; no one else to grow that market. Other tech products by other manufacturers selling at discounts and rebates. Look for more of this from Apple (if they want to grow top line and market share). The stock market can go up without Apple; in 2013 AAPL was up 8% while the S&P was up 32%!

I’m happy to be bearish when it calls for that view, but not yet.