The market has shrugged off all kinds of bad news in the last 6 months setting 21 new highs since October. Can the Teflon Dow continue? On “Power Lunch” CNBC’s Bill Griffeth asked Hugh Johnson, Chairman and CIO at Johnson-Illington Advisors and Malcolm Polley, CIO at Stewart Capital Advisors.
Hugh said there have been 3 big (positive) surprises in the markets:
1. Corporate profits – We were looking at 8%. Looks more like 20% growth which is much stronger than expected.
2. Interest rates – We thought they would be around 5% on the 10 year treasury. They’re at 4 ½ % and that’s good news!
3. The level of liquidity going into the stock market –