Stock Market headline? Okay...
the market adjusted back to the 200-day moving average. It landed perfectly square on the line. That's the FOURTH such adjustment in the past 8 months. Still, the overall trend is up.
I have not added any substantial new positions, or increased any current holdings, during this run-up. I think the market is too bullish as the sector PEs are lagging behind. Most of us, with knowledge of the economy and the market, have been predicting this for 8 years!!! There was so MUCH cash sitting on the sidelines it was bound to re-enter the market in bucket loads and of course, there is always that over-zealous element.
I think the market will continue to correct...either in these pull-backs every couple of months, or in one huge "crash." Then the market will settle on a truer growth line, more in line with economic reality. So far....folks have put the cart before the horse, betting on the come.
Meanwhile, the economy has stabilized after 8 years of obummer, and it is poised to make real, sustained growth. The market will adjust to this real growth, and get back on a more realistic line.