Consolidation of recent gains has been expected for awhile. We characterize it as a normal “backing & filling” process that will be healthy and make the next move up more sustainable. Several reasons for the weakness are being discussed including a weak economic number out of China, a rumor of a credit rating cut in Germany and a weak earnings report from Bank of America. However, earnings for the quarter have generally been good including good earnings from high profile companies like Coca Cola and Intel. We expect the current pullback to be relatively short and shallow and expect new money flows to continue to see this as opportunity rather then a reason to panic. Earnings are still reasonably valued and with low interest rates and the amount of liquidity available to the market, we believe the market will recover soon and be higher as the year progresses.
The content contained herein is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Past performance is not a guarantee of future results and clients should not assume that future performance will be comparable to past performance.
Our Form ADV Part 2A firm disclosure document is available for review. View Form ADV Part 2A, call or email to request a copy. This document contains detailed information about Royal Fund Management, LLC and the services provided.