Our stock market continues to advance. The recent recovery from the April sell-off is the fastest ever. Now, gains are more measured. It is amazing to see how well this market sheds negative news. We’ve had a war in the Middle East, an ongoing one in Ukraine, worries about the impact of tariffs, interest rates that might be modestly too high, and yet, onwards we climb. This just goes to show that when the fundamentals are strong, all the rest is a distraction.

We are entering the third calendar quarter of the year. Historically, markets have often hit rough-going during this period. There is no assurance that history will repeat itself, but it does make sense to be a little more cautious for a while. Now that investor sentiment has turned positive, taking an opposing tack makes sense. Remember the adage, “be fearful when others are ebullient and be voracious as others panic.” Or in simple terms, “buy low, sell high.”

By no means does the Bull believe returns for this year have peaked, nor does he call for

major liquidation. Just trim a little; if a position has not been working, take a hard look and perhaps cash out and wait. The next few months may be tricky, but for the prepared, perhaps another opportunity. Stay steady my friends.

-The Lonely Bull