3rd Quarter 2013

What we have been seeing since early 2009 is the precise recipe for a Bull Market; market participants talking about all the risks and problems while stocks rally and rally. The phrase used for this is that the market has been climbing the Wall of Worry. And through the end of the 3rd quarter, the S&P 500 has posted a gain of 19.79% on a total return basis during this climb.

Unfortunately, it has become standard operating procedure for the U.S. Government to create the issues that form the foundation for this Wall of Worry. And, of course, as I write this, they are doing it again. This time it is the Budget Debate and issues surrounding raising the Debt Ceiling and Health Care Reform. This should drive market volatility higher, which means we should see stocks experience drawdowns. But by keeping asset allocations in-line and cash at the ready, this could prove to be an opportunity for savvy investors.

Time will tell.

Please click on the link below for the full report.

3rd Quarter 2013 Client Newsletter

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