December 5, 2024
By Peter Bower
As regular readers know, the Bull has been cautious since several internal stock market metrics turned negative. These measures point to the potential for stock market decline. Also, the parabolic price action of many “hot” stocks further suggests caution. In many cases, the Bull and his partners would rather be shedding stocks than accumulating them. However, we only move incrementally rather than making “all or nothing” decisions.
The recent market boom has added incremental returns to our client’s stock portfolios. This has been done even with increased cash reserves that can be used opportunistically if a downturn suddenly emerges. Thankfully, results have been excellent even with a safety stash.
No one can know what could spark a sell-off. Experience tells us that our market is vulnerable to one. We hope it will not happen, but we are prepared, nevertheless. Remember, paring back when others are giddy and buying when they are fearful has always been an important principle for successful investors. Stay steady my friends.
-The Lonely Bull
