Third Phase Bull Market

In my opinion, the third phase of the great bull market is now in force.

This is an international bull market, and it's fed by a world overflowing with liquidity, backed by interest rates that are abnormally low. The bull market has moved into "over-drive" with the entrance of China, India, and with one-third of the world roaring into the capitalist system.

Speculative fever is in the air, and most recently we hear about a new source of leverage and excitement. Enter the billion-dollar private equity fund. Now every corporation is a takeover target, regardless of size. This new game dwarfs anything ever seen before. It's global finance on steroids.

The hot names, the new names, are appearing on magazine covers -- Schwarzman, Blankfein, Peterson, Cohen, Kravis, Mack, Pickens. Forget about yesterday's millionaires, today we read about the new breed -- the billionaires. A billion dollars, in case you're not aware of it, is one thousand times a million dollars.

This is a twenty-first century bull market, and the score is no longer kept in mere millions of dollars.

I told you that stock indices around the world are heading skyward in the greatest bull market third phase in history.

Here, I picked out four of my 17 foreign sectors at random. They all look roughly the same. We see Hong Kong, the Netherlands, Spain and Mexico, each with its 200-day moving average. And the direction is due north. I mean, seriously, have you ever seen anything like this? I haven't, and I've been watching markets on a daily basis for half a century.

From: DowTheoryLetter