Two weeks ago, the Bull wrote that the stock market was vulnerable to increased volatility. We had a week of it, then the market stabilized and softly advanced to new highs. Stocks are still throwing off signs of vulnerability, but the immense liquidity in our system powers quick recoveries whenever a downturn occurs. The Bull also noted that this was likely, but expected more mayhem before that happened; more may yet be on the way.
Being prepared for surprise pullbacks is always a good strategy. Investors just shouldn’t be frozen up by that possibility or inevitability. Good markets also should never lull anyone into complacency. U.S. stock market returns this year have been terrific. The Bull and his partners want to preserve as much of them as possible as we set up for long-term growth in asset values. Stay steady my friends.
The Lonely Bull