Some stock market bottoms are dramatic and direct; others are more subtle and evolve over time.

The latter seems to be the type we are having.

Instead of one factor causing the decline and then being resolved, today we have a multitude. As we work though these various issues, markets continue to suffer day to day volatility. However, it does seem that this volatility is around present levels.

How long we have to do this is anyone’s guess, but ours is that it should not take too much longer. After all, this down turn started at the end of last June. The commodity breakdown started with the European debt crisis in August 2011; a long time ago. These trends do not go on indefinitely. In fact, when they are most strongly felt is usually just before a turn. The fundamentals to the economy are still strong. Outside of the energy and mining sectors, earnings this quarter are still advancing around 7%; still a healthy rate for a mature economy. Stay steady, my friends.

The Lonely Bull