Weekly Wrap

Well, it's looks as though my bullish stock market forecast is coming into fruition. In over this past month alone, the S&P 500 has climbed over one-hundred points, and finished this holiday-shortened week above that crucial 1300-point level.

Like I also said before, the economy isn't as bleak as is often reported, and investors may be starting to realize it. According to The Vanguard Group's economic week in review -

The economy continues its modest forward pace, without stoking higher inflation. In fact, this week's data show price increases decelerating, easing fears for the moment that the Fed's accommodative monetary policies are sowing the seeds of high inflation down the road. For the week ended January 20, the S&P 500 Index rose 2.0% to 1,315.38 (for a year-to-date total return—including price change plus dividends—of about +4.7%).

In this period of de-evolution, I think that's a good thing - and I'm expecting more gains to evolve.