We
recently saw some sharp downward move in stocks. While the absolute numbers are
historic, the percentage change is quite modest. In point of fact, we have just started to
resemble a ‘normal’ market.
While
this might be disconcerting to some, we don’t see it that way. A market in a relentless uptrend is
unhealthy. A market with some volatility
will give us the opportunity to invest some of your cash in stocks at better
prices. We prefer to buy ‘on sale.'
The
underlying fundamentals are healthy. The
2017 earnings reports are coming in very strong. Interest rates, while rising, are still
extremely low by historic measures.
Inflation is under control. The
only thing that worried us was valuations.
A quick, sharp downturn will present some opportunities.
This
pullback is healthy, and will help sustain a healthy market longer term than
the abnormal run-up we experienced over the past several years.
