Now that we are essentially through earnings season it has become apparent who has the goods in terms of growth and who doesn’t.  Unlike the rising tide lifting all boats, the December quarter bear market created hazardous seas, sinking some ships (companies) while others managed to power right through.  Those firms leading the innovation cycle in software, hardware, and healthcare enjoyed good results with excellent outlooks; while those that are trying to preserve entrenched and incumbent positions with no real strategic view suffered equity declines.

Ironically, the performance disappointments are more severely punished in a bull market then a bear market because the opportunity cost of being left behind is the greater fear felt among professional investors.  And leaving December we’ve enjoyed the resumption of the bull market. This in turn does create opportunity if miscues are short term.

So 2019 is generally off to a good start for investors.  Stay focused on the companies leading the cycle.  Avoid the value traps.  But take advantage of miscues where you believe the companies in question have the right strategic view and positioning.

Enjoy the ride!

Bruce