March 24, 2022
By Scott Wohlers
Lawyers have long known that money speaks more truth than words. The stock market is no different. Money flows are a more accurate indicator than investor sentiment. It doesn’t take much to see that after the steep decline of the past couple of months, buyers are quick to respond to any letup in bad news.
In fact, even though the Federal Reserve is now signaling a faster, steeper rise in interest rates, the market seems to be taking that in stride. The Ukraine war and the attendant inflation from sanctions is also not holding investors back. There is, obviously, still plenty of liquidity around that wants to find opportunity for returns.
Money flows, according to measures that the Bull and his partners follow are improved, bouncing in and out of positive territory. The trend, however, has been for stronger inflows. So just like a good lawyer, discount all the rhetoric, words, analysis, and confusing cross currents of opinion, and follow the money. Stay steady my friends.
El Toro Solo
