Correction Still With Us

Yesterday’s mini flash crash shows that this market is still susceptible to negative news. A fake tweet about bombing the White House is very unnerving but the immediate reaction of 100 plus plunge is unusual.  The correction still has a little way to go before we start the next leg up. The good news is that earnings being reported aren’t as bad as was expected. The problem is that psychology of the market is in neutral so commitment of buyers is still waning. I would like to see a little more negative mood, so that the correction will complete itself and the smart money will come back to the market.

As the sell in May club begins its mantra the market will probably go sideways to see if it really happens. Personally I don’t see much of an effect from this theory, because the economy is showing strength in some very important sectors, such as housing and healthcare. Therefore, volatility has returned and we will experience 100 plus swings as this all plays out. Bear in mind the averages are up 10% plus for the year so a little consolidation is welcomed. Remember trees don’t grow to the sky!

Bill

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About billriley

Chief Executive Officer, Chief Compliance Officer A co-founder and shareholder, William Riley is a 33 year industry veteran, who observed, many years ago, that over time institutional investors typically outperform individual investors while accepting less risk. In his role as Chief Executive Officer, Bill works tirelessly to make the wealth management strategies used by the world’s wealthiest families and largest institutions available to our firm’s individual clients. Bill combines fundamental and technical analysis to minimize investment portfolio risk and maximize potential returns. He uses a variety of non-correlated asset classes, including alternative investments, to minimize portfolio volatility and seek absolute returns in down or flat markets. Finally, Bill believes in a comprehensive approach to wealth management that fully coordinates and seamlessly integrates portfolio management, risk management and asset protection, trust, estate, tax and charitable planning. Prior to co-founding Riley Wealth Management ,LLC, Bill held management positions at Merrill Lynch, UBS, Raymond James, Paine Webber and J.C. Bradford. Bill founded Fort Worth branches for Raymond James and J.C. Bradford. Prior to entering the financial services industry, Bill ran his families closely held businesses. Bill’s experience operating family businesses combined with his wealth management experience makes him uniquely qualified to advise entrepreneurs and business owners on a variety of matters including complex and sensitive issues relating to business succession. Bill’s degrees and designations included a Masters Degree in Business Administration (MBA), the Chartered Financial Consultant designation (ChFC), the Chartered Life Underwriter designation (CLU) and the Wealth Management Specialist designation (WMS). A Fort Worth native, Bill is a TCU alum and active in many civic and charitable organizations. Bill and his wife, Marsha, now reside in Colleyville, and they have four grown children and four grandchildren. When he is not working on portfolios or studying financial markets, Bill can be found on the golf courses of Ridglea Country Club.
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