Corrections are a necessary part of markets, identifiable only after the fact. Trying to predict a correction is not possible, but taking advantage of one is. We do not try to time the markets, rather, as you know, we are interested in taking advantage of opportunities in high quality issues that may become undervalued in a declining market. The current ups and downs in the markets have been, and will likely continue, presenting such opportunities.
The economic positives of increasing earnings and dividends, interest rates that remain at historic low levels, corporate repatriation of foreign assets, and reduced income taxes are not the stuff of bear markets.
Does that mean we are experiencing a typical correction?
As we wrote at the top, only in retrospect will we know. However, it pays to at least put in perspective the average frequency and magnitude of market declines.
We are prepared. Our list of acquisition candidates consists primarily of companies that have annually raised their dividends for over 25 years, a number of which have raised them over 50 years. You have heard us say it before, “One makes money in bear markets and corrections. However, one does not know it at the time.”
We are here to answer any questions you might have.