At this point in time, I think we can safely say that the stock market is amid a powerful bull market, and it could be one with legs.
The US economy is growing above trend, the labor market remains in a healthy state, technological innovations are improving productivity, and we are on the verge of entering a falling interest rate environment.
Much to the surprise of most professional analysts and investors, the Federal Reserve seems to have pulled off a soft landing, something the rest of the world did not expect to see happen.
In their efforts to quell inflation they raised interest rates at the fastest pace in decades and were successful in slowing the increase in prices while also avoiding a recession.
Now, investors are anticipating rate cuts, which will again bring us into a period of expansion.
But monetary policy isn’t the only thing that is propelling this market higher – numerous secular tailwinds are also at play.
Some of the fastest growing and most exciting industries are only just beginning to hit their stride.
From the broader digital transformation, including cloud computing and augmented/virtual reality to the Generative AI revolution there are numerous big trends for investors to latch onto.
And while the broader market has benefited from this upward trend, I believe the best way to profit from this action is to focus on the the Technology sector