Markets go through rough patches, and this is one. It may turn out that the ultimate drawdown isn’t too bad, but no one can know that for sure. What we do know is that volatility has increased and is unlikely to subside until after the presidential election.

Aside from the political uncertainty, investors are still dealing with the question of whether our economy has just slowed to a more measured pace of growth or if it’s on its way down to something more serious. The answer to this question determines everything about how an investor should manage through this period. It is simply too early to decide.

In the meantime, the Bull and his partners have taken some precautionary measures and are on alert for opportunities to enhance portfolios. We have sold some weak positions and traded up to better holdings. Cash reserves are also up as we look for opportunities. We know bargains when we see them and have already begun pouncing on a few. We are determined to make good on the opportunities and will not fall victim to volatility. Stay steady my friends.

–The Lonely Bull