Topic: How To Invest

What is Pat’s commentary for the week of January 31, 2017

Article Excerpt

Dear Inner Circle member, One of our portfolio-management clients just wrote, “I read your new client letter regarding your outlook for the markets given the Trump presidency. I’m wondering about how those thoughts align with the fact that, except for a brief downturn in the Canadian market, since the last recession, we’ve had strong market growth since 2009. Aren’t we due for a good correction soon?” Investors often ask this question. The trouble is that corrections—temporary setbacks in stock prices—don’t follow any predictable schedule or cycle. Depending on what you look at, you can almost always make a case that we’re due for one. More often than not, you’ll be wrong. There are too many different factors that can touch off a correction, or stop one from happening. Many correction predictions start with the idea that the market has gone up “too far, too fast,” as the saying goes. This, though, depends on what time period you look at. The market has gone up…