NEW YORK (TheStreet) -- Even though the Dow Jones Industrial Average (tracked by the SPDR Dow Jones Industrial Average ETF (DIA)) is up for the last week, last month, last quarter, last six months, and last year of market action, there are still market observers calling for a correction.
But there are four factors that are very bullish for the stock market.
The first is global growth.Consumer spending in emerging-market countries is expected to rise to $30 trillion by 2025, according McKinsey's report, "Winning the $30 Trillion Decathlon: Going for Gold in Emerging Markets" That would be up from $12 trillion in 2012 and would account for nearly half of the world's gross consumer spending. So who will win? Publicly traded companies with a presence in those markets such as Toyota Motors, Walmart (WMT) and Caterpillar (CAT), among others. The second is urbanization around the world. Cities around the world are exploding. The government policy in China expects the number of people living in cities to increase by 100 million by 2020. In an interview last year with Barron's, Carl Weinberg, chief economist at High Frequency Economics, said that each person moving into a city will "contribute six times more to GDP." Caterpillar will do well here as it sells the heavy equipment needed in the construction of buildings, roads and other infrastructure. Toyota will sell more cars and trucks, too. Walmart is positioning itself to profit from burgeoning cities in China.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV