A few years ago, values were everywhere. The stock market was undervalued, and gains were for the picking. The object was to pick the best, but the game has changed. The market is now fairly valued, so stock selection is even more important.

Risk and reward are in better balance, so the object now is to still structure portfolios with odds in your favor; the odds just are not as good as they have been.

Sector and category emphasis has moved from all out growth to growth at a reasonable price. Value, and high dividend paying companies are now favored as well. Investors want more downside protection, and so do we. We are still finding good values and growing companies at good valuations, it is just not as easy. We expect good returns, but not as good as the past few years.

In short, the markets are back to normal. This is the environment that markets are in most of the time.

the Lonely Bull