Earnings reports for the second quarter and the year so far are almost complete. They were quite good. Most companies are growing their revenues and earnings. About 82 percent are meeting or beating expectations. Surely, there were some disappointments; there always are. The economic environment continues to look fine, not super strong, but steady. It is hard to see what derails this.

Interest rates will soon be coming down, and the government is spending far more than it takes in. These should add stimulus to the economy. Deregulation is progressing, and we have whole new industries to grow. Artificial Intelligence, fusion power, and quantum computing are just a few that will help drive more growth.

There is still a great deal of uncertainty regarding the ultimate impact of the new trade war and tariffs, but so far, it seems manageable. Some firms are quickly adjusting supply chains, reducing costs, and making other moves to mitigate damage to their profit margins. Give a big hurray for competition and capitalism. So far, so good.

Summer is quickly ending, and it’s back to school, and fall will soon be here. After that, we will all be looking forward to the holidays. Time marches on, and so will the stock market. Hopefully, profits will too. Stay steady my friends.

-The Lonely Bull