The S&P 500 hit an all-time high yesterday. Some investors say it's over-done or overvalued. That's misguided. The U.S. economy is accelerating. US GDP and Durable Goods reports tomorrow, should provide further evidence to remain bullishly positioned.
Rather than freaking out about the immediate term, the Chart of the Day below lays out the longer-term bullish trend. As you can see, historical volatility (i.e. realized volatility) has been crashing since September of 2015. That means the wild dips in the market are diminishing and the market keeps marching higher. The S&P 500 is up 6% since volatility started falling in September.
We think investors positioned for a correction are positioned for failure. Maybe you sell some on a pop in the bullish economic news tomorrow but staying long for the longer-term remains our call.
