Now What?

The Bull still strongly believes that the bottom of this correction is in! The stock market low was set on April 8th. Since then, the market has been erratically basing, with a lot of back and forth. We said at the time that the recovery was unlikely to be a “V.” It would take time, and so it has. Recently, the recovery has gained some momentum. However, expect more gyrations before this market phase is over.

Bond prices have also calmed down. In early April, the bond market almost became dysfunctional. Our Federal Reserve was close to having to step in to add support by buying as many bonds as necessary to stabilize that market. Thankfully, they did not have to, and orderly transactions returned.

Both markets should recover and work higher over the next few months. It just may be a messy process. Fade the news of the moment and keep your eyes on the underlying fundamentals. So far, these continue to be decent. There is little basis to call for a recession yet. Public companies are reporting good business conditions, but with uncertainty about the impact of tariffs. We are all feeling our way through this, but staying steady is the best course.

-The Lonely Bull