"Adaptable investors stand to make real money in equities market" by: John Sample

.  I hope you had a fun Labor Day weekend. 
   With this holiday-shortened trading week, we at least skipped a Monday without some volatility in the markets. 
   It could be short lived as the new tariffs were to go into place on Sept. 1. 
   Don’t overlook the fact that September follows August as a poor month for positive performance in the equities markets historically. 
   Thank goodness we have the distraction of football season.
   I have explained my optimism about the near term in the equities markets, but I feel necessity to point out details that will increasingly build the wall of worry. 
   We are over 10 years in this economic recovery. The yield curve has inverted. 
   At the current levels of the averages and indexes, the multiple is at 16. We have trade tensions and all the political news one can stomach. 
   This all says there is no doubt that we will get to a market pullback. The extent of that pullback will depend on a raft of issues. 
   We know it’s coming, but no one knows when or to what extent.
   Much of the discussion is focused on the economy is slowing. We will know soon whether GDP has slipped below 2% for the third quarter. 
   Of interest is the notion that the trade war is the real culprit. It’s estimated that at its worst the trade war will take out .3% from GDP. 
   That is nothing to ignore but far smaller than most have speculated. We should realize that capital investment has not come in at a level that will support further growth.
   As I referenced above, there will be enough worry to go around for everyone. That should be enough to push the markets up in the last quarter and possibly into the first quarter. 
   After that, I’m really concerned. The focus will be on the election and I dare say there will be little positive from that. 
   So what is a person to do? Hopefully, for those who had gains this year, there are profits to be taken. 
   There will be those with a significantly low basis and are content to stand pat and take the dividend.
   I think this is the perfect time to do accounting of your portfolio. The world will end anytime soon. It is important where you stand with your investments. 
   As with real estate, gold and Bitcoin, nothing only goes up in value. There are cycles to every market. 
   We are long into this one and it is reasonable to assume a pullback is coming. 
   And, the rest of the world is doing worse than we are. 
   Moreover, there are numerous companies with little exposure to China.
   My point is the equities market gives many alternatives. Not every stock will operate the same. Careful selection, patience and eliminating emotion will get you through the storm. 
   Have a plan. Don’t follow the crowd. The real money will be made by those few adaptable individuals with the courage to think for themselves with a disciplined approach.

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