The chart below clearly illustrates the volatility of the stock market this year. Most of the year we have enjoyed the low volatility uptrend in our bond/income fund positions. I added a couple small equity positions to our model portfolios on Wednesday. While I have turned bullish on stocks near-term, we need to realize that these equity positions are going to be subject to larger day to day swings. It is the beginning of earnings season; Alcoa will be the first to report on Thursday. As each major company reports either better than or worse than expected earning we will see the overall market react. I will have protective stops in place, but I need to give these investments enough room to breath.
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