Market Commentary
If The War Ends
We hope that everyone is well and looking forward to the summer. It has been an interesting year, and we suspect we shall encounter a few more surprises as we head into the second half of the year. Market moves have been quick and rather dramatic. The violent and swift nature of both the March decline and the subsequent 2-week rally, that completely erased the decline. Many of the moves this year have been punctuated with overnight moves of historic proportion based on tweets, making it challenging to communicate our changing thoughts as we maneuvered through the last 2 months. However, we have successfully navigated both the drop in the markets and the subsequent rally. As we highlighted in our last update, we reduced our equity risk by about 20% when the market broke the 200-day moving average. We were bullishly inclined before Iran and the pullback. We started buying on April 1st, and we invested most of that cash at good levels in companies we like. We still have a modest cash reserve that we will be using to add to themes we think will work well moving forward. 2026 has been a good year, so far! We have been building positions over the last 2 years in the companies that provide picks, shovels and materials, as well as the power and components that are the backbone of the massive AI buildout. Earnings from these companies have been strong, and the expenditure forecast for 2027 suggests that [...]