Bears Beware Of A Strengthening Economy

2026-03-05 08:59:16 ET

While the war in the Middle East continues, aside from higher energy prices, the incoming data on the domestic front reflects an economy that is gaining strength to start the new year. Investors would be wise to ignore the doomsday drumbeat from bearish prognosticators and focus on the fundamentals, which are building the case for more bull market gains. The major market indexes rose sharply yesterday, erasing the losses from earlier this week. Assuming the peak in oil prices on Monday is not surpassed, we have probably seen the extent of the geopolitical-driven drawdown. That is a big if! If not, we are likely to test Monday’s low. At the same time, I think significantly higher oil prices would also force the Trump administration to deescalate. The President is particularly sensitive to market performance....

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