Peace?

We hope! It is said that hope is not a strategy, but every investor knows you must have optimism. Otherwise, why would you invest money today for a potential future return? Have you ever seen a long-term chart of U.S. stock market returns? The typical chart goes back to 1925 and graphs the price action to the present. There are many ups and downs, but the trend is a decided upward trajectory. Think of all the serious events that happened over that long period of time, including many wars.

The genius of American business is that it adapts. Current events, social change, technology revolutions all play out. Yet good businesses find a way. If they don’t, they are replaced by others that emerge and take their place. Economists call this process “creative destruction.” It is what has made our capitalistic system so successful and the envy of the world.

The Bull and his partners held a steady course through the recent Middle East war. We took advantage of the volatility to upgrade a few positions at favorable prices. But mostly we kept faith that our business investments would continue to thrive. Another earnings season is upon us, so we will soon see how each has been doing. May peace come and all of us prosper. Stay steady my friends.

-The Lonely Bull