S&P 500:.A case for massive bull run

On Friday 24th May, S&P 500 closed at whispering distance to ATH [5140].

You may have heard/seen rants from prophets of doom on how US equities valuations are bloated, economy is under strain, inflation is out of control, and average consumers in great pain.

But these naysayers have been consistently been proven wrong quarter by quarter for the following reasons:

1) US is the leader in AI: US leads in AI chips developments, LLMs, Machine Learnings, APIs etc. These developments will usher in years of boost in productivity and increase in profitability in several unrelated industries.

Finance: Credit, Mortgage/Lending, Fraud Detection, Derivative Trading etc

Logistics: Autonomous Vehicles, Route Planning and Scheduling Deliveries, Remotely Operated Cargo Ships etc

Manufacturing: Semi autonomous humanoid robots, Process optimization, Swarm drones etc

Health: Diagnostics, Remote medical attention, Cancer Treatment, Gene Therapy etc

Climate: Carbon capture and sequestration, Pollution control, Waste management & disposal etc

Agriculture: Higher yields and greater resilience to climate and pests etc

Space Exploration: Unmanned mining bots, Habitats of human colonies on Moon and beyond, Autononous and self operating space factories etc

2) Equities analysts are consistently underestimating the strength of US and innovation ability of US companies: Michael Wilson [Morgan Stanley] is the latest example of the analysts in Ivory Towers proven detached to the mood on the street.

3) Fed is still accomodating: While the era of Quantitive Easing [QE] is over, and we have heard "higher for longer" often times. Fed continues tk be accomodating and market expectation to come running for rescue at first sign of economic trouble is not unrealistic.

4) Market crash is not be feared: Equities generate astonishing returns [100% and beyond] in the pre-crash stage, and give back maximum upto 30% in a short time, only to resume an upward trajectory. So talks of an imminent market crash should not cause fear to a retail investor who does Dollar Cost Averaging on a monthly basis.