March 27, 2025
By Peter Bower
Two weeks ago, the Bull wrote that the stock market correction was probably over- it was. He also stated that the recovery was likely to be an extended one. So far, this is how things are playing out. Volatility should also continue as investors await and respond to major policy moves by our new presidential administration.
Internal market rotations have been vicious. One day, investors are fixated on safe-haven stocks, and the next, they are selling these to buy the beaten-down growth issues. Trying to trade ahead of these moves is a fool’s game and next to impossible. The only solution is to keep focused on a longer-term strategy. However, it is clear that this year the stock market has become much broader in the names that are performing well.
Expect more of this. However, also expect that companies’ valuations will increasingly incorporate a lower regulatory burden and better margins from the effect of certain tariff strategies. It just will not be a straight line. In the meantime, with all the confusion, delays, and backtracking in implementing these new initiatives, many businessmen and consumers are pausing their spending plans. Therefore, the economy is slowing but the Bull and his partners do not yet see a recession. Please, do not lose patience. Stay optimistic and steady my friends.
-The Lonely Bull
