At this moment we remain in a trading range, which is shop talk for, “We are not going anywhere.” When this happens, it is a sign that the market is searching for its next move. Should the bull run continue, or should the bear raise its ugly head? It depends on what the market decides is important.
We went too far too fast, especially with the technology stocks, and they are simply coming back down to earth. This much, frankly, is not all that insightful; it is obvious. What may be less obvious is what is happening underneath the surface.
Cash flow is the most important thing we look for when investing in a company, but it is also the most important element of financial planning. Many people refer to it as budgeting, but I do not like that term. Budgeting will get a person in financial trouble quickly.
