1. Liquidity 

- The money supply has grown by 25% since March

- Stock usually go up in an environment like that

- When I say usually I mean 11 out of 10 times

- The Combination of fiscal and Monterey stimulus is like nothing we’ve ever seen

- Its worked, and worked well

2. Fed Action

- Interest rates are low and staying there for a long time 

- The Fed & Treasury have back stopped the debt of most of the S&P 500

- Beyond stabilizing capital markets they have almost eliminated bankruptcy risk

- these factors combined will create much higher earnings multiples 

3. The “Real Economy” is doing great (in context)

- This has recovered much quicker than even the rosiest of expectations 

- We’ve recovered over 40% of jobs lost in just 3 months

- Survey Data exploding to the upside

- ISM Non-manufacturing survey sub component for new orders hit all time high 

4. Earnings are surprising to upside

- Analysts are always too bullish 

- In every quarter in both bear/bull markets Analysts estimates come down

- Somehow in this quarter forward estimates are increasing; up 2.4%

- Q1 2021 estimates are for up 13% YoY growth 

- 2021 maybe best year of earnings growth ever