Stock market investors recently have had three major concerns: over monetary tightening by the Federal Reserve, the economic consequences of the Government shutdown, and an escalating trade war with China. Two of these were relegated to the background this past week. Chairman Powell of the Federal Reserve stated that for the time being monetary policy is on hold. The government shutdown ended temporarily but will probably not be reinstated. The China question has not been resolved, but serious discussions are taking place. Two out of three!
As a result, weight was lifted from the stock market and it rose. In addition, earnings reports from most companies reporting their year-end results are excellent.
No recession is in sight, and many companies expect to continue to successfully grow this year. There are always many things for investors to worry about, but now, at least, there seems to be two less. Investors should be able to better focus on individual company fundamentals and most of these are good. Stay steady, my friends.
The Lonely Bull