The stock market has gone from under 7,000 to over 8,000. However, can this rally last? Many analysts say that this stock market rally lacks staying power. The reason is that we are seeing earning drop while prices head higher.
A sustained rally need sales to go up and they are going down. Therefore this is a trick similar to the false rally of 1931. Actually, I predict the smart money is not going in because they know we are in for a fall.
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