Why Are U.S. Stocks and The U.S. Dollar Rising?

So why are these markets rising day after day, month after month? Before we answer that question we want to address the following error that we think the typical investor makes. Turn on the news and an investor will hear the exact reason the market rose or dropped on any given day. How can this be possible? When we hear these explanations we ask ourselves:

1. Is it that simple? With trillions of dollars floating around the global markets how can the local news or an analyst so simply “enlighten” us by explaining exactly why the Dow Jones rose or fell.
2. If analysts can conclude simple ‘cause and effect’ relationships between daily events and market movements, why can’t this same logic provide better forecasting results? (more)