Mildly Optimistic

It's had to be optimistic about the stock market with all the negativity swirling about.   However, that's probably the time to tough it out and stay invested.   

I have mixed feelings.   I believe the market will be significantly higher by year end, no matter what the outcome of the midterms.  If the Democrats win, the market will go up; if the Republicans winn, the market will go up.  But I believe August will be a volatile month, perhaps even being a down month.

It is a bifurcated stock market, with a lot of rotation.  Some stocks are going up, while others are going down, resulting in a slight rise in the indices.

So I will take some profits in advancing stocks (which means they will probably advance further:-)   And I will buy some short term beaten down stocks, e.g. Chinese internet stocks, biotechs.   I expect that the stock market may be a bit of a roller coaster, and be prepared for slow rises and quick drops.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

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