JBL: Fear Factor

Updated from June 3

"The bomb under the table should never go off," said Alfred Hitchcock, who believed the fear was always worse than the shock. So it is with our market today.

I have a stock pick that is literally bombproof; but first, the metaphorical bombs the market is worried about.

Fundamentals are still strong, and corporate balance sheets are the best they have been in years. The S&P 500 is trading below normal multiple, given the level of Treasury yields. This is not a weak market. What is scaring us is the proverbial bomb; we fear it will go off, and that our portfolio will go boom. ...