It is like climbing up that mountain on a rocky ledge or going up an extension ladder higher and higher. If you’re like most people as you get higher you will experience some concern - if not fear. The markets have been on fire and the VIX is at record lows. When will this bull stumble and fall down the hill and be eaten by the bear.
Unless there is a major geopolitical event we thin the bull continues to run. Earnings are good and as I’ve been told – earnings are the mother’s milk of the stock market. The Atlanta Fed has issued a revised GDP of 3.3% as of November 3rd. Globally markets are growing and look good. The new tax bill may make it through Congress and lower corporate taxes but more importantly lower the tax on repatriation of offshore cash.
So when we look at the big picture the bull is running strong. Will there be dips and some minor corrections? You bet and we love them as they are buying opportunities. We are entering November the start of what has historically been the best performance period for the markets – November to May – but we think it is now November to July.
We were stopped out of Facebook and then it took off and hit the in the afternoon and achieved the gains we were in search of. For the subscribers that held the position, congratulations. For those of you stopped out we will strive hard to try to eliminate losses but they will occur. If we never had a loss we could make the claim of being omnipotent. Thanks to all who subscribe and don’t forget to turn the clock back one hour tonight.