Sabre rattling, growling, bared teeth; no matter how you put it, the relationship with North Korea has entered a new dangerous phase. Perhaps nothing comes of it, but a step closer to war is never comfortable for investors, or for that matter, anyone else.

Virility on either side is not in question, common sense is.

We have a real problem, however, we cannot allow ourselves to be held nuclear hostage to North Korea. We also cannot take the chance that North Korea makes available a nuclear weapon to our enemies.

The stock market got the jitters last week, but then recovered some balance. Early first quarter earnings reports have been good; we expect most will be also. However, the risk of a nuclear confrontation now has to be factored into investment strategy. The risk is unnerving to many investors, no matter how slight. The balance between geo-political risk and a good business environment may have tilted to the former.

This keeps markets nervous and unable to make much progress. Eventually, value will win out; we just may have to wait a while.

Stay steady, my friends.

the Lonely Bull