Market Pullback

Last week we saw the major stock indexes drop about 5%, wiping out the early January gains of the year. With this drop many pundits believe that the stock market rally that started in March of last year has ended. I don’t believe this to be the case and continue to be positive regarding the stock market for this year. We had such an impressive move in the last 6 months that I think the stock market was ahead of itself and I was looking for a pull back consolidation. With this drop, I believe it will strengthen the market’s advance in the future and is a healthy sign for the stock market.

We continue to like commodities, such as oil and gold with this pullback and will continue to have equal weighing in stocks; and over weight in international and emerging markets.