In The Lonely Bull

What started as a breeze at first is now a full blow. At first the Pandemic catalyzed many trends in place, speeding them up. Now political change is upon us. The comfort of what we thought we knew is gone replaced by greater unknowns. It may be better, may be worse, more than likely a mix. The Bull addresses politics and the markets in his most recent quarterly newsletter, Perspectives, in the “Talk with Us” section. This is published on the website.

The shift in market leadership from growth to value is now in full swing. It started last fall, slowly at first. It has gained momentum, especially now with a new Presidential administration promising more fiscal support to the coronavirus-stricken economy. Additionally, greater infrastructure spending, social programs in healthcare, and greater protection for the environment are going to be initiatives. How much actually gets implemented is unknowable, but the intent has been clearly stated.

Investors, always wanting to get in front of profitable trends, are moving their holdings toward businesses that will benefit from this. Many of these are “old line” companies that are categorized as “value”. In addition to being in front of a foreseeable trend, many of these stocks are cheap, especially in relation to the previously fully exploited growth leaders. The Bull and his partners began this shift last fall; at first modestly, now more emphatically. We expect good results, stay steady my friends.

The Lonely Bull

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