Yesterday's Reversal is Troubling

On the market...Stocks were spooked by the release of the Fed minutes yesterday. Risk-off securities are making a come back as the rally seems to have stalled.

On the economy...the debate on "soft" vs. "hard" data continues. We anticipate a pull-back in the S&P 500 and will deploy additional assets at that time. Should we have monetary and/or fiscal policy error we will be on the look out for something worse at that time.

On energy...we believe the oil price comeback is solid. We own HAL.

Bottom Line: We don't believe we are heading towards recession and a bear market at this time. We do believe that market sentiment has gotten ahead of itself and would like to see a pull-back before aggressively deploying additional assets.

Joseph S. Kalinowski, CFA

Email: joe@squaredconcept.net

Twitter: @jskalinowski

Facebook: https://www.facebook.com/JoeKalinowskiCFA/
Blog: http://squaredconcept.blogspot.com/
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