The buy-signals we pointed out last week that were emerging in stock market activity are persisting. That does not mean that they cannot be aborted by events, but there is clearly a shift in money flows. It appears there is some serious bargain hunting going on by more sophisticated investors. These investors often have a longer investment horizon than the public fixated on every stock market move.
Technical investment signals are not foolproof, but the recent stock market correction seems an overreaction to some natural concerns that are almost always present.
It is not that tariffs, trade, and interest rates are not important, it is just that much has already been factored in. The future is never certain; however, current business activity looks to be solid with no real downturn expected any time soon. We have used the correction to make a few upgrades to portfolios. We hope these will produce excellent returns, not over the next few weeks, but over the next few years.
Stay steady, my friends.
El Solo Toro