April 25, 2024
By Peter Bower
A sprinkling last week has now turned into a good shower in the U.S. stock market. There have been a few high-profile companies that have missed their revenues and earnings expectations. It is not that they are doing badly, but more a case of expectations getting too far ahead of reality. Among traders, a miss is a miss, but for long-term investors there is much more to consider. There are some great profits imbedded in many stocks and it is an easy impulse to book some now. However, taxes may be a consideration along with the difficulty in re-establishing excellent long-term investment positions.
The economic picture that is being painted is one of good growth, good profitability, but with fear that the Federal Reserve will crush this with too high or even higher interest rates. This is certainly a risk, but one the Bull and his partners feel is overblown. With decades of experience, the Bull has seen much higher interest rates than this with a reasonable investing environment.
Every downturn presents opportunity wrapped in a layer of risk. The trick is to see through near-term concerns and see the longer-term potential. This is exactly what we are doing. We are upgrading and adding to portfolios during this time. After all, April showers often lead to May flowers. This is not a serious setback and unlikely to turn into one. Stay steady my friends.
The Lonely Bull
