Per my past emails, I had mentioned that I felt that we were entering into a new period for the markets with increased volatility. This has certainly come to fruition.
Recent concerns have centered on the weakness in Russia, the European Union and the Emerging Markets. The stock market has been primarily trading based on the direction of oil. The concern is that there is both substantial global weakness (a lack of demand) and too much supply in the market. Lower oil prices are a benefit to the US consumer and the economy, but may put pressure on the Stock Market in the short term.
Yesterday, the Federal Reserve (in their statements) moved but kept the phrase "considerable time". The reaction was a significant rise in the market based on the Fed’s continuing accommodative stance.
The most important point is that although short term volatility in the stock market will continue, it will not have an impact on how we position your portfolios.