June 6, 2024
By Peter Bower
The technical picture of this stock market is still holding up! It has waffled a bit over the past two weeks, but each downdraft has had a nice recovery. Yes, the day-to-day volatility is a little much, but expected. The Bull and his partners have been warning that this was likely. In fact, we have stated that volatility should be expected throughout the remainder of this year.
There are plenty of concerns to react to in this environment. Most of it is noise and has little to do with the underlying value of public companies. Remember it’s earnings, earnings, and a little interest rates thrown in that really count. Most other events are passing in relevance.
The recent action is heartening because it shows that investors are still inclined to accumulate. Pullbacks are seen as opportunities and are acted upon. Outside of a few large companies that have high valuations, most of the rest are valued fairly, if not cheaply. Interest rates have peaked, the next move will be lower. With that move, much of the rest of the stock market will respond favorably. These are good times, stay steady and accumulate, my friends!
The Lonely Bull
