This blog post originally appeared on RealMoney Silver on Aug. 10 at 7:40 a.m. EDT.Let me summarize my market thoughts, as expressed on RealMoney Silver over the past two weeks. As I see it, the bull market argument is that the U.S. is exiting the recession just like the many that preceded the current one. Consequently, corporate profits will exceed consensus forecasts in tandem with:
- the resumption of revenue growth;
- the record fiscal and monetary stimulation;
- an export-led Asian recovery; and
- the operating leverage associated with productivity gains achieved through draconian cost cuts and influenced by the benefits of wage deflation.