Secretariat was probably the greatest racehorse that ever lived. He won the Triple Crown in 1973. Secretariat’s heart was twice the size of a normal horse. As Secretariat was pulling away from the rest of the horses in The Belmont Stakes, his trainer yelled out to the jockey, “Don’t fall off!”
This would be my encouragement to you this morning. Investors should hang on to what I still believe to be a secular bull market…in spite of the scary ride the past few market sessions have brought us.
Investors seem to be focused on interest rates, politics, and the media. However, the U.S. economy is strong, GDP growth is up, employment is up, wages are increasing, regulatory reforms are taking place, corporate taxes are lower, corporate earnings are increasing, and trillions of dollars are being repatriated from overseas. I believe companies will increase capital spending, dividends, stock buybacks and acquisitions.
I do expect this year going forward will be much more volatile than last year. However, my counsel is still the same: Stay the course. “Don’t fall off”…even if the ride is wild.
Most sincerely,
Malcolm C. Tarver, III
Senior Vice President, Investments
Certified Investment Management Analyst ®
Views expressed are not necessarily those of Raymond James & Associates and are subject to change without notice. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Past performance is not indicative of future results. There is no assurance these trends will continue or that forecasts mentioned will occur.
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