Recently, there has been a lot of negative commentary. Some pundits have predicted a near-term correction in our stock market. Others are doing a lot of hand-wringing over the high average valuation for stocks. And then there are those who have been bringing up the possibility of a recession soon. Still others seem distracted by another fight over the Federal debt ceiling and what may happen if it is not raised. This is all a little louder than normal.

Looking at the stock market itself, we just don’t see that much to be concerned about. Recently, the market flashed specific buy signals for the small and mid-cap sectors. Before that, the money flow model that we follow also gave the same for the broader market. Interest rates are coming down, home sales have picked up, and credit is generally available.

Markets go through periodic bouts of concern and negativity. It seems that nothing grabs more attention than pronouncements of doom and gloom. Fortunately, these recent ones are not backed up by evidence. Everything is not great, but things are mostly pretty good. In fact, there is increasing evidence that our economy might be accelerating once again. Certainly, there will be bouts of volatility, as there have been all year. Ignore the chatter and stay steady my friends.

– The Lonely Bull