Hoping for the rally to continue into year-end

Stephen L Gerritz, CFP

I had mentioned in previous blog posts and newsletters that the 2011 correction and subsequent market recovery might serve a guide to what we might expect the market to do after our most recent market correction. Below I have S&P 500 charts from both 2011 market correction (highlighted by a green box) and our current (2014-2015) market snapshot. You should notice how similar the patterns are. I think it is likely that a repeat of the 2011 scenario will continue to play out. If that is the case, the market should continue it's march higher into December.

S&P 500

2011

2011 Correction & Recovery (green box)

S&P 500

2014-2015

2014-2015 Correction & Recovery (green box)

I have continued to increase our market exposure as the market has rallied. 

Recent Terror Attacks

While all terror attacks are abhorrent, history has shown that terror attacks that do not carry significant economic consequences do not have much effects on the markets. I continued to  increase our equity holdings as the French troubles played out. I have been proven right to do so.