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Heads Up!

May 20, 2014 | Weekly Commentary

It’s been a while since the last stock market correction has occurred; the summer of 2011 to be exact.  A technical correction is defined as a price decline of at least 10% to a security or market index following extensive price increases.  Technical market corrections are not necessarily bad as they help deter “bubble” like valuations.

We regularly monitor economic developments and still believe in the economic recovery and slow growth cycle. We would advise not to be alarmed if a broad stock market correction were to occur.  Accordingly, we have placed great care in the construction of the asset allocation to reduce the downside in portfolios if a correction were to occur.  The bond sleeve is designed to resist stock market volatility, while the alternative strategies reduce your downside exposure by employing various tools to hedge risks.  Equities are selected based upon risk factors that are lower as compared to their peers.  It is our belief that, through appropriate diversification, we can weather a correction while continuing to achieve your long-term return goals.

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