"You might have seen this commentary already. I'm sure that I have company in the Collective regarding my increased skepticism of the booming equity markets, particularly in Europe. The divergent opinions between macroeconomic policies (dire) and the equity markets' strength have made it very difficult for me to "jump on the bandwagon" of the rising equity markets (quite difficult if one didn't invest at the lows in '08-'09). I agree fully with Friedman's statement that the unemployment
crisis (particularly in Europe) will inevitably destabilise the political institutions and support that European governments are presently clinging to.

"I understand QE and its effects (at least I think so) but we have seen the effects of high unemployment in history also. Many of your growth, scarcity of resources, etc. themes I subscribe to, however sitting through certain future volatility and possible sharp retracement in equity markets, forces me to be cautious about my investment entry points.

"I guess my point is-using trailing stops (to keep profits intact) is a lot easier than committing new funds. Market cycles seem to be getting more compressed, so that investment decisions must be made in a more timely manner (maybe I'm just getting older and more cautious!).

"Just to say, I enjoy the service immensely and wanted to pass on this article."

David Fuller's view I am glad you enjoy the service and thanks for an email certain to be of interest to many other subscribers.

Most investors are understandably nervous about stock markets, given the slumps in 2000 and 2008 within what I have long described as a secular valuation contraction cycle commencing in 1999. That is what makes the 4-year cyclical bull market rally since 2009 so interesting.

We know that QE has been a very powerful monetary tailwind and that the eventual end of this tactic, possibly within the next two years, at least for the USA, has the potential to be disruptive. We also know that Europe remains the weak link among developed country regions. George Friedman of Stratfor is an interesting commentator but he is talking about Europe in the article above, not global stock markets.

Following the strong rally since November stock markets are not cheap today. However, Fullermoney maintains that they are still the most attractive asset class. The many Autonomies and Dividend Aristocrats that Eoin and I like, mostly have strong balance sheets, often in contrast to their home countries. We also know from Eoin's reviews that many have bullish chart patterns and remain in form.

I would not chase any share that looked overextended. However, reactions within uptrends and breakouts from base formations or other large trading ranges continue to look attractive. Historically, secular valuation contraction cycles for US equities and many other viable stock markets have been followed by secular bull markets.