April 2013 Intelligent Investor Part 2 Opening Statement

Investors continue to interpret a more favorable economic environment in United States in comparison with the rest of the advanced and developing world.

The long string of impressive earnings from the S&P 500 has kept the bull market persistently strong. This strong earnings performance continues to push the Dow Jones Industrial Average to new all-time highs. And on April 10, 2013, the S&P 500 Index finally blew past its previous all-time high from 2007.  

Again, we view U.S. sovereign debt as the highest credit quality in the world. Furthermore, U.S. dollar-denominated assets remain as the safe haven choice for institutions and sophisticated investors throughout the globe.

During signs of global panic, investors have rushed into U.S. assets. But this safe haven status has not accounted for the strong performance of the U.S. equities markets. Earnings continue to make new highs in spite of the global slowdown. But without a rebound in the global economy earnings from these large multinational corporations will fade in time.