May 30, 2007: Louise is interviewed by Bill Griffeth on CNBC TV's Power Lunch about her bull market thesis that was discussed in the May 23 Wall Street Journal article by E.S. Browning. In response to Griffeth's questions, Louise distinguished long-term structural trends (ten years or more -- such as the structural bull market from 1982 to 2000) as opposed to the cyclical pullbacks or moves in the opposite direction that periodically interrupt structural trends. The global markets began a powerful move in 2002, corresponding to the initiation of a new 20-year cycle. Thus far, the foreign markets have vastly outperformed the U.S. market.

Louise noted that "it really is different this time," with the qualifier that the psychology of the market is not different, but rather the environment. There are now 2 billion people in the world who are moving into the mainstream and toward the middle class during the next couple of decades, constituting a once-in-a-lifetime trend. The global infrastructure build-out of homes and infrastructure in support of this demographic trend corresponds to the 1942 to 1966 domestic infrastructure build-out in the post-war U.S., with road and highway infrastructure, homes and appliances purchased, except this time the global build-out is much larger. This bull market should be viewed not in terms of any particular target price but rather in terms of duration, of number of years.

Along with the bull market in equities, the price of gold can continue to rise because the influence of the U.S. dollar is the key. A falling or devalued dollar inflates other assets and the potential rise in our markets, as an inflationary advance, may be tied to the dollar's decline. Last October/November the Dow Jones Industrial Average broke out through a reconsolidation leading LY Advisors to put in place a target of 13,000 which has now been raised to 16,000. Global markets, however, will continue to outperform U.S. equity markets, interim pullbacks notwithstanding.

April 24, 2007: In a wide-ranging interview on Bloomberg Radio's "Countdown", Louise noted that the 4-year uptrend in equity prices continues, with momentum being sustained despite some rotation under the surface. Relative Strength of the Financials and of Retail has deteriorated but RS has strengthened for other groups including Pharmaceuticals, and for some select Technology. There is a degree of profit-taking from the former, with the proceeds rotating to new sectors.

Among the indicators, Advance/Decline continues to confirm on the upside but more volume would be needed to sustain the rally, and an expansion of new highs is desirable. It is important to stay in the outperforming sectors. The Financial sector, which has undergone a 1-year Relative Strength breakdown, remains a concern. Selectivity is essential in both Consumer Discretionary and the Financials.

The market has enjoyed a 4-year advance, and a fifth year would be rare, but the market seems to continue to benefit from the global buildout. A slow and steady, rather than a dramatic advance, might be ahead, notwithstanding periodic pullbacks; but one should stay alert for any deterioration or any negative divergences in the indicators.