What’s Up?

The stock market suddenly seems to be more volatile. Recently, 100 plus Dow point moves are happening with regularity.  Investors begin to question everything.  Is the economy rolling over?  Will the troubles in Europe drag us down?  Will China slowing do the same?  Will higher interest rates kill the bull market for stocks?  Fears run rampant.

However, the fundamentals to the U.S. economy really have not changed. They are good and getting better.  Can they be derailed; certainly, but not nearly as quickly as the market fears.  Mostly, this volatility seems to stem from uncertainty and exacerbated by fears of losing some of the great returns over the past few years. In short, it is a bit of an investor hissy fit.

The stock market has actually been going through an internal rolling correction. One sector corrects as others come to the fore and lead.  The averages don’t show much change as this internal turmoil is taking place.  This process is not new, but has been going on for months.  The broad volatility that we are now seeing usually comes toward the end of this process, not the beginning.  We should be through with it in a matter of weeks, not months.  Stay steady my friends.

The Lonely Bull