Stocks continue their unlikely recovery in the face of skepticism among participants who see more trouble ahead for the global economy. The thinking of many analysts and observers is that the 34% rebound in the S&P 500 Index (SPX) has been nothing more than a massive bear market rally that is doomed to eventually fail, an opinion I hope to dispel here. And while some short-term obstacles remain to be overcome (as we’ll discuss) for stocks, the weight of evidence still supports an intermediate-term (3-6 month) bullish outlook.
Rising hope that the U.S. economy will