Will a Weak Economy Derail the Bull Market?

The Nasdaq last week finally hit an all-time high, surpassing the 5,000 level achieved 15 years ago in March 2000. It took much longer for the Nasdaq to hit record highs than the Dow or the S&P 500 due to the dot-com frenzy in 2000 that sent the technology-heavy Nasdaq soaring.

The Nasdaq record set off another round of predictions by the doomsayers of another imminent crash. In the past few months, we have seen dire forecasts, including one from Congressman Ron Paul. Many of the warnings are aimed at seniors who are vulnerable to irresponsible scare tactics.

The Nasdaq has nearly quadrupled in six years at a time when the Cassandras were warning of another collapse. How wrong they were! There is a big difference between the Nasdaq of 2000 and today. Back then, the high-tech stock index was selling at 175 times earnings. Today, it is selling for 30 times earnings.

Are stocks too expensive? They are certainly fully priced, and today is market is vulnerable. We have not had a serious correction in years.

It is not enough to cause a recession, but it is enough to worry Fed Chair Janet Yellen and her colleagues at the U.S. central bank to extend its easy-money policies. In short the Fed wont raise rates any time soon and in fact will engage in printing more money.

The law would prevent adolescents from smoking, buying or possessing both traditional and electronic cigarettes. Those caught breaking the rules would be fined $10 for the first offense. Subsequent offenses would lead to a $50 fine or mandatory community service.