Fiscal Investor Morning Brief 06/07/23
The ongoing bull run in the market has been met with enthusiasm by investors, particularly in the tech sector. May and June have proven to be prosperous months for investors, and the implementation of the Fiscal Responsibility Act has played a role in maintaining a positive market sentiment. Inflation and rising interest rates do not appear to be significant factors influencing the current market conditions. Despite limited economic data this week, there is a renewed sense of optimism prevailing in the market. Certainty is valued by the market, and although there are a few known negatives, they do not outweigh the positive sentiment.
The primary focus of the market news is centered around issues related to cryptocurrencies. Companies like Coinbase and BiFinance have been causing concerns, but their impact on the broader economy remains minimal. It is best to allow the involved companies, the SEC, and Washington to work towards resolving these matters. Another noteworthy development is the merger between PGA and LIV golf. This trend of mergers is likely to continue as companies seek to leverage synergies in a challenging economy or capitalize on favorable valuations. Regardless, it indicates that businesses may hold a more optimistic view of the economy.
As Fiscal Investors, we do not overly concern ourselves with day-to-day market fluctuations. Our belief is that by investing in good stocks, you will likely experience more wins than losses over a 3-5 year period. At this stage, it is generally safer to focus on established and successful businesses while avoiding short-term trends. Although there may be instances where picking the right trend pays off, it is essential to consider long-term strategies rather than relying on short-term luck, similar to picking lottery numbers. Investing the money spent on lottery tickets into an S&P 500 fund would likely have been a better strategy for long-term growth. It actually is more rewarding as you see your investments grow (with discipline and education). For instance, the Fiscal 12 and Top Stock list saw an increase of over 2% yesterday, demonstrating the benefits of slow and consistent growth for long-term investing.
Stay tuned for more updates tomorrow. In the meantime, we encourage you to conduct thorough research and explore the Fiscal Investor Guide, a 10-week program, designed to enhance your financial literacy as the next bull market unfolds.
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