Economist and CNBC commentator Larry Kudlow published a column reversing his thinking that the economy was not in recovery mode but merely marking time. Based on recent employment and retail sales numbers, he now believes corporate earnings will be strong and push the market higher. I am not convinced. He is the guy on TV, I am the unknown blogger, but I think the numbers are misleading. Earnings have been good, but those results are based more on cost cutting rather than revenue growth. Bull markets are born of optimism, loose money and low interest rates. We have had loose money and low rates. We have had a tremendous rally off the lows. It is time to take profits or raise stops to protect profits. World debt levels are worrisome, government spending is going to force tax increases. Interest rates must rise to sell bonds. This is not a bullish environment. Investor beware.
