January 20, 2022
By Scott Wohlers
Just in case you haven’t noticed, the stock market just had a correction! It has been mostly centered in the NASDAQ and other high-growth companies. However, most every sector has seen damage. How much more in this corrective process we must endure is not known. A guideline is that when the leaders of the past rise come under pressure, the bottom is getting close. This has recently happened with companies like Apple finally coming under pressure.
Corrections are normal but never fun. They often signal a change in market leadership and always provide opportunity to those willing to see through the volatility. The Bull and his partners have been reducing the growth mix in portfolios for some time now. It is clear that value and business cycle-sensitive stocks are having a resurgence in investor interest. More of these have been included in our strategies. However, this has not been an all-or-nothing approach, but an incremental adjustment. There are plenty of high growth companies that continue to have excellent prospects.
No one has a crystal ball to see the future, but our calculation is that once earnings are reported this quarter, that the future will still be one filled with opportunity. In the meantime, trying to time ins and outs in market participation is a fool’s game. This is not likely to be a serious setback. Stay steady my friends.
The Lonely Bull
