Last week the stock markets around the world reacted to geo-political fears of conflict between the U.S. and North Korea.

Even though the underlying fundamentals, recent money flows, and profits outlook remained positive, the emotional atmosphere changed from optimism to fear.

It’s hard to be optimistic in the face of potential nuclear conflict. So some investors decided that cash might be a better asset for the time being. That is rarely the case, but people are people.

Over the weekend, the rhetoric surrounding this issue seemed to calm down a bit and investors again sought out equity assets. We have no greater ability to forecast world events than anyone else, but we know from experience that quick emotional responses are no way to invest and make money. Unless presented with additional fundamental evidence, we will continue to hold the exceptional equity assets we have; stay steady, my friends.

El Solo Toro