I’d love to start this communiqué to all of our subscribers by evoking the sentiment of Franklin D. Roosevelt, who once told Americans during the Great Depression, that the “only thing we have to fear is itself”. It’s a great line but I know retirees and wealth-builders hate their capital being undermined and it takes a very special investor, who can arrange his or her investments so that market slumps don’t really create fear and loathing.
You all know me, and I always see a buying opportunity when markets tank because I don’t think this secular bull market is over, yet. Some of my expert colleagues like Gary Stone from Share Wealth Systems argue we are in a cyclical or short-term bear market inside a much longer-term secular bull market. I think he's onto something there as it’s consistent with my economic view that we are in a long, slow, grinding higher global economic recovery, which the stock market will mirror.
Historically, low interest rates are a great boon to stocks but we need an economic take-off to power markets higher. Without it there is bound to be slow rising markets but if the economic promise from quantitative easing fails to show up, then recessions worldwide will kill this bull market.