Resilient!

So much has been thrown at our stock market this year, but it has proven to be resilient. From worries about interest rates, increasing inflation from tariffs and deportations, and valuations that seem high! Yet, the market has continued advancing. It is difficult to see what knocks it down.

Clearly, there has been a rotation from high-growth companies to more mundane, value-oriented ones. However, these rotations have occurred repeatedly for the past two years. What seems like a change of trend suddenly gets aborted and investors return to what had recently sold off. It is too early to make any predictions about ongoing trends.

The best course of action seems to remain well-diversified. Then the shifts in investor interest do not unduly affect portfolio performance. To this end, the Bull and his partners are rebalancing some accounts to maintain the inherent balance in our strategies. Could something come along that finally does knock this market down?  Of course! However, balance can mitigate the damage. We remain optimistic. Stay steady my friends.

-The Lonely Bull