The market is in a tight trading range with the S&P bounded by 1700 on the upside and 1685 on the downside. Breaks in either direction will likely lead to the next big move. While there are a number of dark clouds on the horizon, the markets have generally ignored all storms in 2013. At some point, the bulls will not be able to withstand the pressure and a larger decline will occur. With the talk of Fed tapering, a debt ceiling debate, changes in the Fed leadership (and policy?), upcoming elections, unrest in Egypt, and the historically weak month of September fast upon us, it is not the time to get aggressive. We will continually reassess but, for now, a conservative posture is deemed prudent with the information available. The market's resilience has proven a thorn in the side to those of us who have been expecting a larger decline but rest assured it will come (maybe sooner than many think) and we will be glad we have taken a more cautious approach. In the meantime, we remain invested to capture some of the gains and are ready to make portfolio adjustments whichever way this market breaks.
Welcome to the extended version of the BAM Market Note. We are not bloggers by nature but have had clients and friends inquire about our thoughts on the market in between our newsletters. The number and content of posts will likely be determined by the conditions of the markets and the interests of our readers. We would greatly appreciate your feedback and comments.
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