Seems like every other day, the stock market vacillates between optimism for economic reopening and growth and a retreat to concern. Reopening stocks and safer defensive steady growers come in and out of favor depending upon the news of the moment and investor sentiment.
Business cycle sensitive issues should have significant earnings acceleration with a return to normalcy. Steady growers, although expensive, seem a haven if all does not go well. Given the dichotomy between the two categories, strategists must come down on one side or the other. A perfect balance is probably not going to earn good returns.
The Bull and his partners have sided with the thesis that, even though irregular and fraught with concern, the economy is going to normalize. Our citizens want it, and many, if not most, are already moving on with their lives. Certainly, we have some hedges, but these are companies that offer sustainable growth, regardless. The back and forth makes it aggravating at times, but we are focused on what we perceive to be the most likely outcome. Earnings for the first quarter are beginning to be reported. That will provide more evidence as to progress toward normalcy. Stay steady my friends.
The Lonely Bull