In The Lonely Bull

That is the stock market action for months now. So far, the S&P 500 has recorded over 50 new highs this year. The expectation is for more to come. Typically, investors fear buying near record highs, but one cannot always wait indefinitely for pull backs. That is not to say that picking up bargains when they present themselves is not a good idea. In fact, the Bull and his partners make this a practice.

During severe declines most investors do not add to their holdings. They are much more likely to sell and freeze up. That is what causes the opportunity in the first place. It is just that a longer-term perspective is needed. When the Bull entered the business over 40 years ago, the S&P 500 index traded between 80 and 90; it is now over 4500. So much buying has occurred near new highs. Also, there have been many pullbacks, crashes, and crises along the way.

The way to handle the anxiety of making investments during years like this one is to scale in. Buy a little periodically and if bargains occur, pounce. Don’t freeze up because stocks have been doing well. This probably reflects a good business environment. Make sure you have funds for other needs and emergencies, but otherwise invest. Buy quality and understand the reasons you are making any move. You will never time all the wiggles and squiggles and you will probably die with investments in your estate. May they be good ones. The Bull and his partners work hard to do this for our clients and their families.

The Lonely Bull

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