A Market Update and our thoughts…..Congrats to Donald “The Brain”

Many may blame the election results for the recent market movement, but this is not 100% true.  We would argue that the sugar induced (QE3)  market has run its course from the FOMC’s recent announcement and we are just now back to reality, and closer to fair value, by our estimate.

Here is a chart of the S&P 500:

Over the last several days, post-election, capital markets have been droopy and retreated slightly. It is worth taking note of our description,  “droopy” and “retreating” as the total market movement from the Bernanke “Juice is Lose” run is just 5% lower from its peak.

Markets can, and do, overshoot on the downside, just as they get too optimistic on the upside. The good news is they usually find their footing and these over reactions create opportunities for those willing to keep a steady hand.

Have a Great Day!

JK

PS Donald “The Brain” carded his first hole in one recently…congrats Donald we know your investment picks are as good as that swing…Well Done!