We recently stated that the bottom was in on the U.S. stock market. We have since had a good recovery. We believe and hope there is much more to come. The cabal of fears, weighing on this market, has turned out to be anemic. Lower oil prices are now providing stimulus to retail sales, China slowing has turned out to have next to no impact here, and interest rates have not risen. Even if the Fed starts raising rates soon, they will still be extraordinarily low for a long time.

This market has just needed to focus on earnings and fundamentals, not fears. Now that it is doing that, investors are getting back their bearings and making appropriate decisions.

In most cases, the outlook for most companies is better than expected.

No one likes corrections, but they do provide pause and time for reassessment. Now that that has happened, we like what we see. Stay steady my friends.

El Solo Toro