Stocks Best Start in 2 Decades - More Upside Left?

The 8.7% gain for the S&P 500 through the first two months of the year is the best start for the stock index since 1991. Last year year the index was up 5.5% through the first two months of the year and it ended unchanged after some heavy volatility.

This year things are different. The major worries about Europe are still overhanging, however it appears they may remain subdued for the near future. Yields on bonds are much lower this time around with the 10-year at 2% versus 3.4% in 2011. This makes stocks that much more attractive and throw in a still low valuation for equities and I will stick with my 1500 target for the S&P at some point in the next 6 months.

For the S&P 500 to get to 1500 it would be another 10% rally from yesterday's closing price. This does sound very attainable. However, stocks will not go straight up and look for a pullback in the next couple of weeks as your buying opportunity to put some more cash into stocks.