The Dow rallied today and finished 288 points higher than when trading began this morning. But that's only one day, so what's ahead? Good things, in my view, and several signs are pointing to why that's the case.
There at least five solid reasons to expect the U.S. economy to continue to improve markedly and for stock prices to rise appreciably as we go through 2015.
1 - The Federal Reserve this afternoon announced that it will be a long time before U.S. interest rates increase by very much. See Fed Sticks to Patient Tack on Rates.
2 - Oil prices are low and perhaps headed even lower. Consumer spending as well as sales, profits and operating costs for U.S businesses (other than energy companies) will continue to show considerable ongoing improvements as a result. See Oil Drives Decline in U.S. Inflation.
3 - The U.S. dollar is the strongest currency in the world now and is likely to continue as such, signaling that U.S. prices of imported goods will remain low and that inflation will remain well under control.
4 - Global geopolitical conditions are unsettled but it's in nobody's interests, including the Russians, to stir the pot further. Hence, I expect that these global tensions will ease in the coming weeks and months.
5 - The U.S. economy is gradually strengthening and each of the above enumerated factors should add to our economy's positive performance and job growth in 2015 and beyond.
Finally, please consider this. Predictions concerning the future (what other kind are there?) are always subject to being wrong, of course, and mine are no exception to that well established rule.
Nevertheless, despite these unsettling times, I am bullish on America, our economy, job growth and the stock market as we finish 2014 and head into 2015 and beyond.
That's my take.