Stocks continued to gain ground as the Dow was up 39 on moderate volume to close at 22,158. All three major indexes (Dow, S&P 500 and NASDAQ) closed at record highs.
Apple released it most expensive phone and the stock is flat. At the annual KMS conference that we just attended there was talk of the new phone and how its facial recognition system used 6 billion calculations per second! They also talked about the smart phone taking the place of the computer, flashlight, watch, wallet, alarm, etc etc and how this was driving the cost of other items lower.
The general feeling at the KMS conference was one of optimism. The only negative was the gridlock in downtown Seattle traffic. Market gurus who spoke argued that interest rates will remain low for an extended period of time while GDP growth will rise to the 3% range and inflation will be less than the Fed target rate of 2%. It is expected that markets will churn higher barring any unforeseen event. I, on the other hand agree that the inflation and GDP growth rates are reasonable but I think interest rates will move higher. Now if I could just figure out which guru is correct I could be a guru as well.