“You can close the book on [September]… Thank God!”
Harry Doyle – “Major League”
Harry Doyle—a man for our times and sorely needed today if you ask me. Is he still in Cleveland?
So, anyway, if you’re like me—and just why wouldn’t you be, huh?—September can’t disappear over the horizon fast enough.
While we certainly expected some volatility leading into the election—and don’t kid yourself, we likely have a bit of that to go—we didn’t expect the NASDAQ to go over Niagara Falls in a spike-lined barrel. Virtually every part of the tech sector got pummeled but good. And the rest of the market fared about as well—which is to say… bad.
The good news is that we used “the pause” to collect a lot of profits and reduce our exposure to any further barrel rides. We also used “the pause” to see where our next forays lie.
The 3rd quarter economic numbers are going to be awful… but not nearly as awful as most everybody expected. It sort of reminds me of that old saying: “In the valley of the blind, the one-eyed man is King.” So, while we only have one eye, and about 30 arrows in our back, and maybe a poisonous snake attached to our rear, there is good news: On September 11th, the money-flow indicator we watch very carefully, turned positive. While it’s been moving up for about 6 weeks, this is the first time it’s been in positive territory since it turned negative on December 12, 2019. This means confident money is coming home to roost and that’s a VERY GOOD SIGN for both our portfolios and our economy.
However, we still have this election-thingy to deal with.
So, while it’s unlikely we’ll jump to fully-invested portfolios any time soon, the time to ramp-up is, nevertheless, coming. We have plenty of cash to deploy and the opportunities post-election will likely be numerous as we continue to crank the starter on the biggest economic engine in history.
Standby for ignition.
As always, I pray that God richly blesses you and your family and animals!
Best Wishes in Peace and Joyfulness,