Market Analysis

The markets continue their rolling corrections, declines that hit different sectors at different times, which make for choppy trading.  This, along with it being summer, has resulted in prices going nowhere in what can be called a trading range.  Often, these ranges end with a sharp decline on high volume followed by a wide-based rally that sends things on another bull run.  August and September are common timeframes for this to occur, so everything seems to be acting “normally.”

The economic data that has been released lately has shown some slowing in activity and revisions have been to the downside.  Markets are considered discounting mechanisms that actually trade on economic activity 6-9 months in advance so the decline in the indexes in the first quarter of this year may have been pricing in the data that has just now been coming out.  Also, the Fed is a big factor here and weaker economic data tends to either push tightening off into the future or bring interest rate cuts closer.

In summary, we don’t see anything that makes us doubt our long-term bullish stance and any pullbacks will be seen as buying opportunities.

 Gary and Dianne

This report is provided as a general market overview and should not be considered investment or tax advice or predictive of any future market performance.

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