Thursday, June 7, 2007

Markets Release Some Steam

We have been experiencing a bit of a sell off in the markets over the last few sessions. If you remember, I made a statement here recently that it wouldn't surprise me to see the S&P 500, and the markets in general, have a bit of a sell off, after the S&P broke the old record set in 2000. As you know it did break the record, and now the sell off has begun.

We have had some sizeable gains in the market this year, and as you know, the market usually never moves in a straight line up or down. Whether this is the long awaited correction, which is defined as a 10% drop, or just a pause, remains to be seen. Traders will be heading for the exits, as investors begin to hunker down and absorb the blows to their portfolios. For long term investors, diversification and dollar cost averaging should help you weather the current storm and add to positions at a discounted price. I do not think this is the beginning of a bear market, as the economy has been exhibiting signs of increased strength recently.

Have a great day and stay tuned for other helpful bulletins to keep you aware of investment, economic and market news!

John Kaighn

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