Newton’s Third Law of Motion

“For every action, there is an equal and opposite reaction.” This physical law can also apply to human interactions. Perhaps not in equal measure, but actions certainly engender reactions. We are now seeing this with the application of tariffs by the U.S. Other countries are reacting. Actions create reactions, and reactions create more reactions. It is difficult to see how all of these will settle out.

Tariffs, along with other major governmental changes are creating stock market volatility. The Bull foresaw this; it was an easy prediction. Expect more! Despite volatility, the stock market is holding up well. Companies that are thriving are attracting capital and becoming more valuable. Clearly, the key is company performance. Most investors are seeing through all the noise of the moment and focusing on business success.

Have faith in good management teams. These companies will adjust to changes and continue to find ways to be successful. Sometimes it just takes a little time. Stay steady my friends, and do not overreact to the actions and reactions.

-The Lonely Bull