Fasten Your Seatbelts!

It’s going to get bumpy. In August, we witnessed a swift stock market downturn, and almost as quickly a recovery. Now, we are probably in for an extended bout of volatility. The presidential election is nearing. Various economic proposals are being floated. Some may be liked by investors, and some may not. Companies have no greater insight than anyone else as to what may be coming and naturally, they become cautious. Therefore, investors have even less guidance than usual to rely on. Confidence is very thin.

The U.S. economy looks to be mostly fine, but some cracks have appeared in its foundation. Unemployment has been trending higher, credit card and auto loan delinquencies are up, and some areas reliant on discretionary spending are soft. None of this must lead to a serious downturn, but they are all little warning bells. The Bull and his partners are keeping a close watch on the investing landscape. We have also taken some precautionary measures to prepare and to be able to grasp opportunities as they present themselves.

Remember, September and October have often been volatile months. So, here we go. Buckle up and be prepared. Stay steady and pick up a few bargains.

-The Lonely Bull