February 20, 2020
By Peter Bower
Despite recent resilience, internals of the U.S. stock market have continued to deteriorate. Money flows that turned negative in late December, have recently taken a dive. Speculation has risen to a new level with the recent heady activity in some companies like Virgin Galactic, Tesla, and Zoom Video among others. Parabolic moves by some other stocks are also warning signs. All these yellow/red flags are not determinate of a downdraft in the market, but they must be taken seriously.
The Bull and his partners try to build resilient portfolios for our clients. These are based upon what we feel are enduring values in proven businesses.
Corrections do happen, but great businesses come right back and go on to greater growth. So far, a few stale positions have been replaced with better opportunities. No great defensive moves have yet been taken, but we are watching closely. Well balanced portfolios should be able to weather a sudden squall now and then. Stay steady, my friends.
The Lonely Bull
