I think the market is taking a step back and assessing what's really going to happen with the stimulus package.
I think the market is scared by uncertainty and that's what this election is giving us. And the most uncertain sector fundamentally is technology.
We believe we're in a renewed growth cycle that could last three-to-five years. If you're waiting to jump in, you're going to miss the boat.
The market and the economy are still on track. Earnings continue to be pretty strong and valuations remain at pretty reasonable levels.
The positive consumer confidence could have been a negative.
Yes, the market is taking somewhat of a rest, but there's evidence that the believability factor is increasing. Overall, investors are starting to believe the market can and will remain in good standing coming off of one of the best quarters we've seen in a while.
We think maybe on a longer term basis, their valuations are a little inflated here. But we think that on a near-term basis, that they look very, very timely.
The Dow has significantly outperformed the Nasdaq over the last six weeks, as well as the last few sessions, so a little pullback today (Tuesday) is no surprise.
But we do think that employing that panicky investment strategy, scrapping your existing strategy and buying all defensive names is not the way to go. Stay focused with your existing disciplines and not stray from those,
I'm quite frankly a little tired after this week.
