After two 20% yearly gains, the U.S. stock market put up another nice one this year. We don’t know the exact figures yet, but they are in the mid-teens. We might get even close to another 20% year! This has been a spectacular run. The good news is that valuation increases are backed up by similar earnings increases. Therefore, it is not just a speculative run.

Who said inflation is not good for stocks? The Bull and his partners wrote that when inflation really started going during our recent COVID period, companies should take advantage of inflationary environments to pad their profit margins. And that they have, in spades. Have you had an electrician or plumber out lately? Then you know what has happened. It is across the board for most goods and services.

The Bull and his partners will soon tackle what to expect for next year. Volatility is an easy call. Remember, volatility cuts both ways. It can be a plus if responded to correctly. In the meantime, stay steady my friends.

– The Lonely Bull