I want to start this week by returning to my
comments from Friday. You’ll recall I discussed a few events that might
sap the bullish momentum from this rally and send stock prices lower. I
mentioned inflation, oil prices and debt at the state level as potential
speed bumps.

I’m sure we could come up with a few other bearish
stories to keep an eye on. But the point is, while we should always be
aware of threats to prevailing market sentiment, it is not time to get
positioned for them.

The good vibes from the QE2 and better than expected
payroll data are just getting started. I would expect the stock market to
maintain an upside bias through Christmas.

And much of the reason for this has to do with
consumer spending. Analysts expectations are always too low for holiday
spending. This year will be no different.

Here’s a chart form the St. Louis Fed, that shows
how much personal income has risen since the recession…

Published by Wyatt Investment Research at