Market Commentary

The Correction

The market has fallen in October; something that was expected, not only was it expected but most investors should welcome the weakness. Corrections are normal and health restoring to a sustainable Bull market. When stocks only go up, and keep trying to reach the sky, there has been a collapse that followed and it can easily wipe out 50% or more of the gain. A correction of 10% to 15% means that the weak hands, the worriers, are out and the rest of us just sit back and watch.

New money in the form of 401Ks and IRAs will help support the market. A strong underlying economy also helps. Those that fled will come back slowly so there is plenty of reason to think that the bull market is not over.

It will end someday, and likely just before the next recession, but the odds are this is not the time. The old truth of buying when there are sellers and sell when there are buyers applies. If you have not already prepared for this correction it is likely to late to do so.

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