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Volatility has certainly increased. From less than 15 to over 22. That’s almost 50% in short order. Stocks are in the midst of the mild pullback I have written about. 2-5% is the range on the downside. Weakness remains buyable.
 

You know where money is going on an index level? The same place I have written about for six months, small caps. Below is a chart showing the small caps relative to the large caps. When the link goes up, smalls are beating the large. I think that trend continues into 2026, albeit not as strong as it has been.
 

The bull market turned three the other day. I vividly remember trying to get on as many media outlets as possible in October 2022 when I was so firm that a new bull market was beginning before our eyes as inflation soared and stocks cratered. Overpriced stuffed Wall Street shirts were out in masse, that 2023 was going to see a recession and more bear market. As usual, they were wrong and hurt millions of portfolios with their bad advice.

In the short-term, we have negative seasonal trends for another two weeks, but the down 2.5% Friday counters that with strong returns over the ensuing 5-10 days. I won’t be surprised if the major stock market indices digest the big down day before resolving higher next week.

On Monday, we bought TLT. On Tuesday, we bought PCY, EMB, and SPYQ.

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