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“It is all about how you finish!”

3/3/2018

Championship teams that I have been fortunate to be a part of, had that “killer instinct.” These teams just seemed to know how to break the will of their opponent.

Once in control, these teams knew how to separate themselves from the opponent. Even when surprised, these championship teams regained their footing and resumed imposing their will upon the opponent.

This analogy reminds me of the struggle between the bulls and the bears in our current market. The bulls have been in control since the 2016 election. It looked as if little could stall the victory march. Then… higher interest rates which had been ticking up for a couple of years and higher inflation which was the by-product of full employment and tariffs.

Then BAM! out of nowhere, a 10% decline. Very few saw this coming. The few who did, may have taken steps to be more defensive. In the end, for some, it was shocking.

So, who is in control now? Are the champions (the bulls) trying to regain their advantage or are the challengers (the bears) trying to come out of hibernation?

We think the bulls will re-establish control. Look at Friday’s close. After another down opening, the bulls fought back and regained control for the day. Only the Dow Jones Industrial average closed lower on the day. A strong finish for the week.
So, for this day, the bulls won. The bears have not broken yet. I look for more fight from them before the bulls prevail. Remember, we are in a bull market.