In The Lonely Bull

If you bought bonds at generational lows last week and now you have losses – never mind.  If you sold your stocks recently because you thought new tariffs put additional pressure on growth and would lead to recession – never mind.  The $300 billion additional tariffs on Chinese exports to the U.S. now have been partially delayed.  Some may be rescinded.  So, you acted upon this – too bad, so sad.

If you think this is no way to manage an economy, you are not alone.  Uncertainty puts off investors.  Business people put long-term plans on hold and sit on their cash.  The knock-on effects spread, and the economy does suffer.  How much is not clear.  This may be a passing phase.  Some movement toward a trade agreement with China would go a long way toward settling things down.

The Bull observed during the recent sell-off that stock prices went down faster than money flows did.  This was a positive sign for a quick recovery.  The smart money was buying throughout this recent period.  Sitting tight was the right thing to do – it still is.  That is not to say that volatility is going away or that everything is alright.

There are plenty of challenges out there for our economy, but panic is not a solution.  The Bull and his team are analyzing holdings, making plans and moves to manage through this uncertain period; stay steady, my friends.

the Lonely Bull

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