Last week we started to see the market pull back.
Given we have been calling a pull back since the market was at 4500 (back in December) it is of no surprise to us.
As usual, the market has over shot fair value and will now start to move back to this level. That said at this point we are only expecting to see the market get back to around the 4500 level where we expect to see some support, as there are still plenty of yield investors out there.
We are now hearing from the financial media that we should expect to see the market pull back. Some are calling it a major pull back. The media are always the first to agree with an obvious trend, and the last to provide a new idea.
It has been obvious for some time that our economy is not as healthy as some would have you believe. You only need to take the time to find out how many businesses are going broke and how many people have either lost jobs or are working reduced hours.
Although this pull back may cause some panic selling, it will be a good opportunity to buy.
The worst is behind us, as far as the market bottom.
We will continue to buy high yielding quality companies and hold for the long-term.