The S&P 500 and the Nasdaq opened at record highs on Tuesday amid rising appetite for riskier assets following Emmanuel Macron's victory in the French presidential election and a strong U.S. corporate earnings season.
While I've never once gotten my shoes shined, I do have my own version of the proverbial shoeshine boy who signals the top: my father-in-law. He regularly provides a perfect contrary indicator: When he says it's time to buy something (like U.S. stocks in 2008 or the U.S. dollar at the start of this year), it's inevitably time to sell, and vice-versa.
World stocks hit a record high on Wednesday after strong earnings and the prospect of tax cuts for corporate America boosted U.S. shares and the euro held on to recent gains as political concerns in France ebbed.
Global equity markets rallied on Monday to lift a gauge of world stock indexes to a fresh peak, while the euro briefly jumped to a five-month peak against the U.S. dollar as the first round of an election in France went to the market's preferred contender.
U.S. stocks rallied on Thursday, with the Nasdaq closing at a record, as a round of solid earnings led by American Express pushed equities higher. The credit card company closed up 5.9% as the top boost to the Dow Industrials after reporting a smaller-than-expected drop in quarterly profit late Wednesday.