War! (Again)

The markets are again contending with another war in the Middle East. The greatest worry for investors in this one is its impact on energy prices and availability. So far, those effects are muted. There is plenty of supply around, the U.S. is now the biggest energy producer in the world, and price increases, so far, have been modest. In short, the economic impact of this war on our economy is small.

At first, our stock market sold off, but it has since largely recovered. This reaction did offer an opportunity to do some portfolio upgrading at favorable prices. The Lonely Bull and his partners have done so. Remember, volatility offers opportunity, not just risk. The important thing is to be able to never have to do anything. We manage your assets so that it is always the case.

Big stock market moves often happen because speculators find themselves on the wrong side. They may be using borrowed money and must unwind their positions quickly. Once that liquidation is out of the way, markets return to more normal trading. That is what is happening now. Stay steady my friends.

-The Lonely Bull