In an interesting analysis out today, and an RBC strategist makes the case that the stock market should not see a serious correction until we enter a recession.
What’s the point? We agree that 1) U.S. economy still has considerable room for further growth, perhaps several more years, and 2) there is further room for expansion in both earnings and stock valuations. We believe economic and earnings fundamentals support higher equity prices over the longer term. We would not be surprised to see the stock market up 10% both this year and next. Link: http://blogs.marketwatch.com/thetell/2014/04/28/bull-market-wont-die-until-a-recession-hits-rbc/