The Wall of Worry

For investors, there are always some things to worry about. Today, the list seems longer than ever. Two wars, inflation, interest rates, the U.S. deficit, tariffs, and the strength of the consumer are a few that come to mind. Any one of these could come to the forefront and impact investor sentiment, yet the stock market has recovered from its April correction and looks reasonably solid and on an uptrend.

One thing an investor must learn is that the underlying metrics of revenues and earnings are more important than these background issues. These two measures have remained surprisingly strong and probably will continue to advance. No one has ever made money selling because of wars in the Middle East for the concerns just listed. They are distractions and seldom rise to levels that must be considered for stock valuations.

The proverbial “wall of worry” usually serves to provide enough reasons to be cautious and prevents markets from overheating. Periodic mini-setbacks keep a lid on runaway speculation. These actions usually help keep uptrends intact. The Bull and his partners continue to be optimistic that our stock market will rise higher in the months ahead. Stay steady my friends.

-The Lonely Bull