Early this past week, stock markets were hit with a quick, short sell-off, a squall rather than a big storm. It affected technology stocks most directly but also other highly valued companies. For readers of the Bull’s blog, this should come as no surprise. An increase in volatility has long been forecasted. Is more on the way? We shall soon see. Money flow data for the markets will soon tell us. Nevertheless, declines should not be too severe. There is tremendous liquidity in the system and more on the way through additional Federal stimulus.
Our preference during this period is to not make changes, perhaps an opportunistic one here or there, but mostly staying patient. After all, the economy is already recovering and with vaccinations for Covid-19 ramping up, expect more. Perhaps by summer, some of the most hard-hit sectors in our economy will also be returning to life. Internal market sector action already shows investors predicting just that. Stay steady, my friends.
El Solo Toro