MARKET TURMOIL YTD February 1st

Week end January 30, 2015
The word Turmoil according to the Dictionary means, “a state of great disturbance, confusion, or uncertainty and its synonyms are confusion an turbulence; this pretty much sums up the US Stock Market results YTD.

We ended the week with major Equity indexes off over 3% YTD. The DOW is off 3.69% and the better representative index S&P-500 was down 3.06% since year end 2014.

A few facts need to be reiterated.
---The Dow Jones highest closing price thus far was recorded on 12-26-2014 at $18,054
---The Dow closed on 1-30-15 at $17,165 down $889 from the December all time high or 4.92%.

We are now in the reality of the law of high numbers; when the market is up or down a couple of hundred bucks a day our mindset is “Gee, what a huge move” and you’re scared or euphoric because in your memory these moves were unusual. Get over it, at Dow %18,000 a 10 percent correction is a down move of $180,000. That 10 percent down move from the high would take us to $16,200; that’s a very normal move that will scare a lot of people.

My view is that the market goes down another 3% or so before heading back to its highs. I’m buying NOBL, SPY, DGRW and if your into only Mutual Funds Fidelities FUSEX tracks the S&P-500.