If we don’t yet have a trade war, we’re at least fighting some increasingly serious skirmishes. Our side’s calculation is that this is a good time to pressure our trading partners for fairer arrangements and that the impact on our economy will not be all that serious. That may be true, but secondary impacts are unpredictable and can have unintended consequences. That’s what is worrying investors.

The stock market recently advanced to the upper end of its trading range. We are now headed down; probably toward the lower end of that range.

We have predicted that we could be in a trading range environment for some time. That still seems to be what we are experiencing. In this environment we can expect volatility and group rotations as investors try to sort out the new winners from losers. We are doing the same thing, but with a longer time horizon.

As a response to these conditions, we are also emphasizing our income strategy. At least we can earn good rates and some appreciation with less volatility during this period. If you would like to talk with us about this, please call.

the Lonely Bull