Wednesday, March 6, 2013

Did I call that correctly, or what?

With my last blog post on February 19th, I said "Once people realize that nothing really happened by the Sequester cuts, the stock market will continue its path of slow growth." Well, I hate to pat myself on the back, but I was correct.

Now for my next prediction.

Investment returns are off to a great start this year, but we are liable to see a little dip between the 3rd week of March through April 15th. Why? People have to pay their taxes! In order to do so, they generally will sell some investment positions to free up cash. Historically, this is what we have seen during this time period for several prior years. Once we get past April 15th, I believe that we will continue our slow growth forward. So, do not be overly concerned during this time period if the stock market pulls back.

Stay diversified and stay invested.