Stocks cruised to yet another set of record highs last week on strong earnings from Caterpillar Inc. and 3M Co., in particular. Materials and information technology were key with better-than-expected earnings, strong results, and even stronger guidance (meaning what they see ahead).
As of the time I'm writing this, 77% of companies reporting have beaten expectations, and 79% have beaten revenue estimates – both according to FactSet.
I'm not surprised – and you shouldn't be either – considering that we laid out this scenario months ago, and we've been preparing for this for years with all manner of profitable recommendations.
At the risk of sounding like a broken record, growth will continue to be faster and stronger than many people expect – which is going to put the markets and most investors in a position of having to play catch up.
That's great for your money because it means the most hated bull market in history can go a lot higher. I think we're talking Dow 60,000 within a decade for reasons I laid out in an article you're going to want to read if you haven't already.
In the meantime, there's one sector attracting more money faster than all the rest.