March 2021

Close up of multiple stock positions on a laptop screen and a mobile phone screen

“Beware the Ides of March!” You gotta be kidding. Bring it on. We survived the Ides of February and are ready to tackle whatever comes our way. The weather reminded us that Mother Nature can be capricious and unpredictable.

She (can I still use that pronoun in this ‘cancel culture’?) had no sympathy for the fact that Covid-19 was already upon us with a vengeance. And, as always, exercised her authority with total unconcern for the economy and investments. So be it with anthropomorphic spirits.

All that led to spastic market gyrations. And, unfortunately, they are likely to continue. Here’s where we are now: Covid-19 vaccinations have progressed to the point that, although many of us are bemoaning the fact of having to isolate ourselves, they have engendered enough forward-looking positivity that the economy is moving upward at a stronger rate. Expectations for a return to ‘real’ living are higher than as short a time as a month ago.

That is reflected in the market as the up and down battle of the optimists and the pessimists continues. At this point historic statistical measurements of the markets, i.e., price to sales, earnings, book value, et.al are at highs, indicating the markets are fully valued.

If the pessimists win the struggle and the markets decline, it will be as it has been for us in the past, an opportunity to acquire or add to, issues that will continue meeting those requirements. We have been there before in my fifty-two years of money management, and each time this conservative approach has enabled us to continue enjoying an increased cash flow. Sure, market prices have gone down, but as Warren Buffet reminds us, that means values have gone up. And over time the markets do also.

As we said, “Bring it on!”

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