Friday, June 25, 2010

Expect Market To Trade Within A Range

If history doesn't repeat itself perfectly, it often looks similar. As the below chart from Chart of the Day details, it is not uncommon for the market to trade within a range after a strong recovery off of a significant bear market. On top of this, the market tends to be choppy during the summer months. If the presidential election cycle market plays itself out, a better market environment may be upon us beginning in the fourth quarter and carrying over into early next year.

Investors can use this opportunity to build positions in higher quality companies that have pulled back in this market correction.

No comments :