June 5th Entry

Hello again!

Since the 6% correction and recovery in February 2014, the market has been sluggish. After having a very good year in 2013, this is not surprising. The best thing that could happen to the market would be to have a 15% to 20% correction over a 4 to 6 month period –which is broadly based. This kind of correction would give a new lease of life to this bull market. According to historical records, this market is getting old and tired but there is a difference this time; we barely got over the time period where Feds kept decreasing interest rates. In the past, this phase did not take this long. This gives me hope that this bull might run for a few more years. However I will not be surprised to see a sharp correction or an unexpected bear market. It is not a good thing to be fully invested at any given time and likewise it is not a good thing to be out of the market completely either. I have been keeping a close eye on the stock market since 1985. Most of the time, it is a very boring place where nothing much happens. It takes a lot of patience and discipline to make money in the market.