In a highly predictable move, the US stock market has finally developed a reasonable correction (5%) last week after what can only be described as a two month explosion higher. Given the extent of the damage in 2008, the still incredible deals to be had in stocks and relatively poor alternatives in bonds and cash, that might be all we get in the way of a correction. Anyway I turn this thing, I continue to see evidence that the bear market lows are behind us and we are in the early stages of a very robust rally in stocks worldwide. However, we are making no assumptions about the future and we are quite willing to make defensive adjustments as conditions warrant. Last week’s correction provided us with a good moment to check your pulse.
