We witnessed yet another new high in both the Dow and the S&P 500 and people still don’t believe this rally has legs. This is the bull market no one loves for sure but it’s more than that. We have legitimate reasons why the market should not have this extended rally. The slowdown in China, European unease, stubbornly high US unemployment and a government that failed to provide a workable solution to sequestration. We also have legitimate reasons for this unconventional rally. A manufacturing sector that is expanding, corporate earnings that consistently confound, a free spending Fed and historically low interest rates. However, the bottom-line as we see it is simple, there is no better place to put your money than in US equities.

The new mantra for all investors should be, it’s a bull market until it’s not.

We don’t pretend to be know-it-alls here, just believers in basic common sense. Invest in stocks as they are rising and sell after you have made a sensible profit. Do not fight the tape as they say.

The coming week we can all sit back and digest Warren Buffet’s comments and realize it really is quite simple. Invest in good stocks at good prices and you will be rewarded more often than not.
We also have some more earnings reports to digest. Companies like Disney (DIS), Sony (SNE), AOL (AOL), News Corp (NWSA) and Whole Foods (WFM). No surprises here and this is a good thing since these are important barometers of consumer sentiment.

There will be a lot of Fed Speak this week but we don’t expect any market moving commentary from them.

Only key data will be the jobless claims on Thursday, which hopefully will show another decrease.