Churn!

Our stock market averages do not begin to tell the story of what has been happening with stocks. Below the surface, much has been changing. The old high-tech leadership has become a source of funds as investors look for cheaper alternatives. Some of these are down 25-40%. The sell-off has been brutal. In the meantime, old economy stocks, such as industrials, are up double digits since the beginning of the year. Money has also been moving to other international markets.

In general, there has been a move to find cheaper assets that have long been overlooked during the tech-led market of the past few years. It is, in simple terms, a rotation from growth to value. The Bull has warned that this was coming. He stated that investors should implement broader portfolios, including both growth and value. That is what we have been doing for our clients. Adjust if necessary and stay steady my friends.

-The Lonely Bull