Correction, Not Collapse

 Markets have a tendency to go against the opinion of the majority, which is precisely what happened in early April. After experiencing our first correction in 18 months, the turn of events in Washington and other parts of the world took us down an additional 10% (Bear Market Territory). Sentiment had turned decidedly bearish. However, within 30 days of the April 7th low we gained it all back causing it to feel more like a correction opposed to a bear market. 

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Inflation has recently become a cause for concern due to the potential of tariffs being levied on international trade. Inflationary pressures can cause problems in the economy and the stock market due to increases in interest rates and uncertainty in the future.

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We continue to hold the belief that we are in a long-term bull market with short term corrections or cyclical bear market along the way. Broadly speaking, earnings have remained strong and approximately 80% of the companies have beaten expectations. Until proven otherwise we remain in the bullish camp.

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Success comes from owning companies with strong earnings and healthy balance sheets and holding for the long term. At times it can be tempting to try and time this market by getting out at the top and back in at the bottom, if it was only that easy. The old axiom still applies “success comes from not timing the market but time in the market”