Digging Deeper Into the 'Most Hated Rally'

Last week I voiced my concern about this "most hated rally" ever, since the 2013 earnings estimate for the market has been declining rather than advancing. Absent conditions in which earnings are getting better than expected, I cannot get enthused about the market advancing day after day. What support is there other than a higher valuation, and why is the valuation justified without better earnings?

To make the analysis fair, we do need to dig one layer deeper. Throughout 2012, we were celebrating when estimates advanced, but we also recognized that the surging earnings at Apple (AAPL) were driving the advances. Apple is a huge weighting in the S&P 500, and it highly influences the behavior of the index in many ways. Apple's 2013 earnings estimate is being cut regularly, and we need to factor this into our analysis....169 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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