The market appears to have entered a period of consolidation following a strong uptrend that peaked Oct. 15th. This correction does not look any different from the others that have occurred since the market bottomed in March. Moreover, our more conservative investors are invested in Bond/Income funds, most of which remain in a very low volatility uptrend.
More aggressive clients have a relatively small exposure to stock funds at this point and should not be overly concerned with what appears to be a garden variety correction. If it turns out to be worse than expected, we are protected by our trailing stop strategy. Sector fund trailing stops set at 12% and diversified stock fund trailing stops set at 8%.
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