The U.S. stock market is gradually working through many of the fears we documented in the previous few blogs. However, there are still lingering fears. As companies report their third quarter earnings a clearer picture is emerging of business prospects. That picture is not all rosy; there are a few areas for concern, but business conditions are more good than bad.
Some companies are doing exceptionally well while a few others are succumbing to competition or technological change. This is a natural progression of capitalism, but always raises concerns in the process. It is the job of Riverplace Capital to seek out the strong growing enterprises and avoid the declining and failing ones. At times, the view is rather cloudy, so we rely on our measures, instincts, and experience. Those are pointing to many terrific opportunities.
As this sell-off began, we sold some positions which we felt had not proven themselves and should be replaced. We are now analyzing many new opportunities to replace those sales. Stay steady, my friends.
the Lonely Bull