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 In The Lonely Bull

A prayer for all those impacted by Hurricane Ian. The Bull and his partners wish for safety and a speedy recovery for all! However, there is also the ongoing financial storm which is not yet over. We do think we are getting close. Positive money flows into stocks are still at a very high percentage. These are not yet overwhelming the fear in the markets but point to serious accumulation by strong hands. Remember J.P. Morgan’s remark that during these times “stocks return to their rightful owners.”

Stock market investors have recently factored in a recession. This was done in response to comments from the Federal Reserve that interest rates would need to go to a restrictive level and stay there for an extended period. They also indicated that they expected unemployment to rise. All this to bring inflation under control.

So, the Fed switched from being concerned about the unemployed to be willing to put some out of work to quash inflation–quite a dramatic turnaround! Investors are not amused, and many have sold down their holdings. Most of that has been done, and now savvy buyers are positioning themselves for recovery. This recovery will be discounted well before evidence appears in the economy. In the meantime, we are adjusting to better exploit what we see coming. Stay steady my friends.

The Lonely Bull

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