Another Era of Funk


Here and there, the market experiences an era of funk to which the market will worry for a while and then eventually recover.

Every presidential cycle goes through it. Some are quite more serious than others. In the 2000s, most noticeably, we've had Sept 11 during the Bush Administration, we've had the Great Recession during the Obama Administration. Now we have the China Tariff situation in the Trump Administration. The latter seems to pale in comparison of the other presidencies. After all, no one is being killed and the financial markets are not threatened to implode.

My point is while our current funk is an annoyance to the marketplace, it really isn't a big deal in the overall picture. There is a rise of "what ifs" which leads to a greater amount of volatility and fears in the market, but in the end the situation will resolve itself. And then, we will coast along until the next funk arises.

During this time period, market bears will come out of their caves and preach gloom and doom but the reality is that the Chinese Tariff situation in merely a bump in the road. It's great for the financial media since they have something to talk about. The mainstream media doesn't really care. They are more concerned with bringing President Trump down and that is fine with the market - as long as the Democrats don't find anything drastic that will remove the president from office. If there was something out there, the stock markets would be reflective of this, but they are not.

I see any major drop in the market as a good opportunity to buy quality stocks on the cheap. The markets are at or near all time highs since Trump was elected which means many of the best stocks are at or near their highs as well. A bit of a selloff is a good way to add or add to a position that you did not want to buy at the high.

Once again, we will ride out another era of funk and the markets will recover from any selloff.

Hang in there. 

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