We have been reluctant to launch headlong into this Trump rally, but we have to admit, the action is gaining strength and credibility. Much of the action, sector rotations and new relative strength plays, actually started much earlier this year. This year the stock market transformed from growth oriented to one focused on value. In English this really means that cyclical plays became the new market leaders.
Although the underpinnings of this rally have been slow to get in place, the market isn’t waiting. We have begun to selectively buy. Earlier we moved portfolios toward value and are now continuing to do so. We have found some excellent values and believe investments here will be quite profitable. It’s a new world, but it’s not. All the established investing principals still hold. Enthusiasm needs to be tempered along with disappointment. Stay steady, my friends.
The Lonely Bull