"Thanks for all your reports - always interesting.

"I met David many years ago (about 15 I'm guessing) when I was at Ord Minnett in Sydney - he was a lovely guy who has a great way of looking at markets without being influenced by all the noise.

"I have had plenty of thinking for last 4 mths that I'm too bullish & markets still have too many problems - yet they have continued to move higher & higher..

"Not sure if you'd agree but here are a few reports I did in the last week on why we are in a multi-year bull market that began in June last year.."

David Fuller's view Thanks for your thoughtful introduction and for sharing your reports.

I can say without hesitation that those Ord Minnett presentations across Australia, and also in New Zealand, are among the highlights of my career. The audiences were wonderfully enthusiastic and we had a lot of fun.

I have not yet had a chance to digest fully your reports (Feb 6h and Feb 14th) but can see that they are both interesting and detailed. I also wanted the Collective to see them over the weekend.

Your email touches on a widely shared reaction: "…I'm too bullish & markets still have too many problems…" Yes, they have run temporarily ahead of themselves. However, we should all remember that when investors no longer fear "many problems", we will most likely be in a euphoric overbought condition. We all know the wise adage: Bull markets climb a wall of worry.

The acid test within the next few years, I think, will occur when QE is removed, especially if interest rates rise sharply. Meanwhile, there are too many potential variables to be more precise but that period is likely to be challenging.

On a longer-term basis, we also know that a lengthy period of valuation contraction, which we have experienced since 1999, and which may continue at a somewhat higher ranging level among stock markets for a few more years, is eventually followed by a multi-year bull market.

(See also my comments on the valuation contraction posted on Monday 28th January 2013.)