ALL TIME HIGHS

U.S. stocks advanced again Thursday and continued the hot streak period. The S&P500 made its fourth straight daily gain and closed at a record high. Gained +0,29% and finished at 1,992, topping its July 24 finish to set its 28th record close in 2014. The four-day winning streak is the longest in the last two months.

The Dow Jones rose +0,36% to 17,039, pushing back above the 17,000 level to log its highest close since July 24. The index is still off around 0.6% from its all-time closing high.

The Nasdaq rose +0,12% to 4,532 ending at its highest level since March 31, 2000.

All in all the markets are on record levels. Most of the investors are scary enough about these levels, but is it really abnormal this gaining? An average investor starts to be scared when he or she hears the record word. They remember well the all-time highs in 2000 and 2007 and both followed by 50% declines. In their mind the record is the one of the scariest phrase.

But records and new highs are perfectly good signs. Those show the strength of the bulls. Since 1950 there have been more than 1,100 all-time highs closings in the S&P. That is 6.8% of all trading days or roughly 1 out of every 15 days. 70% of all-time highs occurred not surprisingly in the bullish rallies during the 50s, 60s and 90s decades.

How long stays the rally with us. Nobody knows, but just try to follow the momentum and don’t be scared about the higher and higher prices. The stocks don’t have to crash merely because they hit all-time highs.

The BFM Assets Team.