April 13, 2023
By Peter Bower
There’s an adage on Wall Street that good markets continue to go up despite what is seemingly a lot of bad news. There are many reasons why this can happen: the bad news is temporary, and investors are looking out beyond the immediate; the news isn’t as relevant to company valuations as many might think; and other factors like money flows take precedence.
Money flow readings into stocks have recently been very positive. Although all eyes are on the Federal Reserve, they are probably finished hiking rates or at least very close to it. Wars and higher prices are not necessarily bad for companies. Remember, good businesses can maintain their profit margins or even improve them during inflationary times. Wars pump money into economies and can bolster spending.
This market is climbing a wall of worry and is likely to continue to do so. Do not fall victim to the concerns of the moment. There will always be some, and most of ours are not permanent. Stay steady my friends.
The Lonely Bull
