Squalls

During the best of bull markets, squalls periodically hit.

They come out of the blue, blow through and usually are short lived.  The selling seems to make sense at the time, but is a response to short-term considerations, not a change in fundamentals.  Interestingly enough, during bear markets, buying stampedes occasionally occur, but also do not last long and don’t change the underlying trend.

At the end of this week, a squall blew through. It created a stir, but didn’t change much.  The underlying view of the economy and business environment are still positive.  Money flows into stocks have been very high and indicate that any pull backs should be shallow and short-lived.  Markets never move in straight lines.  All indications are that this will be over soon.  Stay steady, my friends.

El Solo Toro