October 9, 2015
By Peter Bower
Our manic-depressive market just made another turn. It’s now up; down is out. The emotional rescue came from a refocus on the real world; not the one of fear.
And the real world is doing just fine, maybe even better than fine. Analysis of the fundamentals throughout this past correction did not support the fears. The economy is growing and most businesses are doing quite well.
Of course, there are some sectors like energy that are having problems, but they are specific to them. The benefits of lower energy prices are now showing up in better retail sales, an improved housing market, great auto sales, just to name a few. The price of rice in China has very little to do with all of this. Slightly higher interest rates also will not be a problem; they may, in fact, be helpful. Savers deserve a fair return on their capital, too. So for those that have remained steady throughout this period, reward is coming.
The Lonely Bull
