One Third of the Gains Since the Start of 2009 have Now been Lost

It may be hard to believe, but 35% of the S&P 500's gains since the start of 2009 have now been erased over a span of less than 14 trading days. After gaining 247 points in 2009 and the first two and a half weeks of 2010, the S&P 500 has dropped 86 points since its January 19th peak of 1,150.

I liquidated our equity holdings on Dec. 21st and 22nd; so we have avoided the pain of this downturn. 

We are primarily invested in high yield / income bond funds. While these funds have held up very well, they have begun to slowly weaken. Our moving average stop loss program is nearing a sell point. Should our montoring system deliver a sell signal it will be acted on the very next day.

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