Market Call: Investing Is For Teenagers

Contrary indicator alert! On Sunday, the WSJ posted an article titled "These Teenagers Know More About Investing Than You Do: Custodial investment accounts for minors have surged in popularity." According to the article, the kids are all buying technology stocks: "Brokerage executives say that technology behemoths that are ubiquitous in the lives of teens are often some of the most widely held shares." 

You have been warned: Headlines like these could turn the bull market into a meltup and then a meltdown. We continue to be alert to such signals that might send the S&P 500 to our year-end target of 5400 well ahead of schedule, say by mid-year. For now, Information Technology continues to lead the bull market as semiconductor stocks go parabolic along with Nvidia (chart).