Dow and S&P 500 Reach New Highs Amid Bull Market Discussions

On a day when the Dow and S&P 500 closed at new all-time highs, not all stocks are riding the bullish wave, such as NVIDIA which saw a dip. In this context, Jim Paulson, a respected strategist and author, shares insights into what he terms an 'everything market.' He explains that typically, a new bull market gains momentum supported by federal easing preceding it, resulting in lower bond yields and an increase in money supply. Uniquely, this bull market has operated under a tightening Fed until recently, which marks a significant divergence from historical patterns. As the Fed lowers interest rates and injects fiscal stimulus into the economy, Paulson perceives a shift towards broad market participation across various sectors. This activity includes tech stocks and smaller companies gaining momentum that was previously lacking. Despite concerns about the maturity of this bull market, with an average lifespan of four to five years, Paulson sees potential for growth due to the slack in the labor market and the resilience of household balance sheets. Overall, consumer and business confidence remains low, yet not at levels that traditionally signal the end of a bull market.