April 18, 2024
By Peter Bower
Sometimes a little rain turns into a downpour. The Bull and his partners do not believe that will happen in the stock market now. Certainly, the market is responding to some disappointing news on inflation. Interest rates have risen, but not dramatically so. It seems, more likely, that an overbought, exuberant market needed an excuse for some profit taking. Business fundamentals have not changed; if anything, they are even stronger.
Interest rates are the current concern. It is now unlikely that we get three interest rate declines from the Federal Reserve this year. One, maybe two are the most that we can expect. However, our economy is performing well despite the current level of rates.
Historically, our stock market has a 10 percent correction every year. This hardly qualifies. These setbacks serve to clean out excess speculation and can reset expectations. They are healthy and should be used to add to or improve portfolios. This is what we are doing! Enjoy, and stay steady my friends.
The Lonely Bull
