In The Lonely Bull

Some professional investors have been floating the idea that for many companies, the current environment is as good as it gets. The rebound is in full bloom, revenues have expanded as far as they can before inflation, concerns about higher taxes, and potential disappointments for the economic reopening puts constraints on further improvement. The Bull and his partners feel this is unlikely.

The business rebound is strong with only a portion of the economy coming back to life. Additional stimulus in the form of additional infrastructure spending is also likely. We may not know the scope and extent of the spend, but some is probable. In the meantime, the current fiscal stimulus spend is ongoing. In addition, the Federal Reserve has stated that its monetary policy will remain accommodative.

The stock market may wax and wane, but the underlying forces are for better earnings, greater profitability, and higher stock prices. So, we do not believe we are near a peak. Possibly we have a period of digestion as markets absorb the significant moves we have had, a plateau perhaps. However, much more is expected; stay steady my friends.

The Lonely Bull

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