The Ides of March
Caesar was assassinated on the Ides of March. We aren’t looking for anything so dire, but it might be a good time to take stock. So far this year, investors have experienced just one difficult week; otherwise markets have been on a tear. Most indices are up double digits in 2½ months. Much good news has been anticipated; can this continue?
We want to make one thing clear, we expect more gains and good returns this year. However, these will not occur smoothly. Investors today are looking past several potential pitfalls that can lead to interim setbacks. Among them are a breakdown in the China trade talks, a crash out of the EU by Great Britain, the Mueller report or other politically important setbacks, and slowing European economies just to name a few.
Thankfully, underlying business conditions remain excellent. The consumer is strong, interest rates are low, the federal government is spending heavily, and corporate investment is increasing. This all bodes well for future activity. That is why a setback here and there should be easily overcome. We just want you to be psychologically prepared; stay steady, my friends.
El Solo Toro