With a high emphasis on both consumer staples and consumer non-discretionary stocks, we should be able to take advantage of the lower dollar and the expected growth in exports and repatriated earnings from higher-value currencies associated with those exports.
Still, we would be surprised if we do not see some kind of correction, but it certainly appears the market is signaling its recognition that the new, higher growth earnings cycle is indeed here. While we cautiously look for signs of accelerating inflation and tighter monetary policy to control it, we trust that the Fed will do the right thing and reign in monetary growth when appropriate, and thus avoid another bubble redux caused by loose fiscal policy that has overstayed its welcome...
