How's Your Hangover?

When I was younger and would get hung over from drinking too much, the cure would be a combination of a bacon, egg & cheese sandwich, a workout and maybe a cocktail.

But really the best cure was just time. Eventually it would just go away and I would feel normal again the next day.

In the market it's the same thing. It just needs some time.

The November through January period is historically the most bullish 3 months of the year. And then comes the February Hangover.

We're in the middle of that right now.

Look at the average performance of every February going back to 1950:

And remember, this is the most bullish quarter of the 4-year presidential cycle.

Of the 16 quarters in the entire cycle, the one we're in is historically the most bullish.

Pre-election years are also the best year of the 4-year cycle.

So I still believe that a messy February doesn't mean the end to the Bull Market that turned 8-months old today.

I still think it's just a well-deserved digestion of gains before the next leg higher in equities.

We'll let the market dictate whether we change our approach or not. But so far, just perfectly normal markets doing their thing.

Let me know what you think!

- JC