Is The Bottom In?

Well blink and you missed it according to some news outlets and financial experts who claim that the bottom of the market is in, you’re forgiven if you have lost faith in their judgement given their track records and perhaps their own self interest in seeing a end to this bear market.

We were due for a rally as nothing goes straight down or up and after breaking 8,000 on the Dow we plunged rapidly below 7,000 so it should be no surprise to see some sort of rally. The bigger question is it a bottom or a dead cat bounce. No need to declare this raging bear dead and dive head first into this market. If we have indeed put the bottom in, the markets probably will not rocket over the 10k mark and there is a good chance we may test these lows at some point later in the year, possibly in the fall which is seasonally the worsts for equity investments.

Let see if this is a “sell in May and stay away”, situation. You may also want to use this situation to make some adjustments to your portfolio as it appears we may have a window to get out of a few investments that you may no longer favor long term. Much of the consensus seems to have this market rally going to about 8k for what ever thats worth.