Tuesday, November 16, 2010

Market Comment 11 16 10

The market had another tough day.


The US dollar has been rising. Stocks and commodities are suffering due to their current strong inverse relationship to the dollar. See the chart below.


Every asset class, with the exception of the dollar, is falling. There is no place to hide. Concerns about China slowing down and European sovereign debt problems are appearently the source the problem.

Our low volatility bond/income funds have also been trending down. I did lock in profits in a couple of our positions on Tuesday. I will look to redeploy the money as the situation becomes a bit clearer.

Markets never go straight up. I anticipated a correction and it is now at hand. It will more than likely be contained and provide us with a buying opportunity shortly.





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