To Buy, or Not to Buy?

That is the question! Is it better to sit on some cash or plow straight in, with abandon? The Bull and his partners have picked up a few bargains but are maintaining healthy cash reserves. Yes, the correction, “summer squall,” may be over, but we expect further bouts of volatility. After all, the Federal Reserve has not yet acted to reduce interest rates, a national election looms, and several wars continue. And who knows what other “black swans,” lurk?

Recent inflation readings are encouraging; progress toward lower levels continues. Therefore, investors expect the Fed to lower interest rates in September. A complimentary question is whether our economy is slipping into recession. Clearly, there has been some slowing of economic activity. Unfortunately, it is always difficult to tell when a slow trend abruptly cascades into something more serious.

Investors who weathered the recent sell-off are wary and watching every data point for clues as to how the business environment may change. Playing a little defensively at this point is called for, just do not overplay it. The U.S. economy has shown, time after time, that it is resilient and provides fabulous opportunity for creating wealth. Stay steady, my friends.

The Lonely Bull