More Rotation

At the beginning of this year, the U.S. stock market was clearly making a shift to value stocks. This was after years of being focused on growth, especially the technology sector. Once the Iran war started, investors shifted back to firms that they felt would do well regardless of economic damage from that war. These would be growth companies that were immune to higher energy prices, higher interest rates, and an uncertain consumer sector.

Now that there seems to be an end to the war, investors are again looking for value in many other sectors. Value stocks are making a comeback. Oil prices have retreated; interest rates may eventually moderate, and more confidence in broader economic growth can emerge. So, once again our stock market is making a shift, a rotation. Hopefully, a broadening of stock market participation will resume.

Trying to make the same shifts in investment portfolios is a fool’s game. They are too unpredictable, swift, and may not be long-lasting. Therefore, the Lonely Bull and his staff have created portfolios that have a good balance. Both growth and value companies are represented with good cases for each for continued growth and business success. So far so good. Stay steady my friends.

-The Lonely Bull