and welcome back to RI's S&P 500 blog.
The late spring correction continues as expected. The SPY itself is now down 8.5% from its highs seen just last May 19th at $143.58. As in my previous posts, I fully expect the lows of March 17th, 2008 at $124.82 to be tested in earnest. What is most interesting is how and when this is occurring. Readers of my special report, Opportunity is Now Here, will remember that during typical US Presidential election years, the market does nothing for the first half, then dramatically outperforms for the second. Oil is (in my opinion) topping out, earnings are (in my opinion) starting to bottom out and the political stage is being set for a real showdown in November. Both Obama & McCain shall do anything they can to appeal to voters with regard to energy prices - that can't be oil friendly. Both candidates shall claim to have the appropriate fix for the housing crisis - that should help the financial sector. Even if the rhetoric is perceived as only a short term fix one can see why the market may do better going forward.
Currently the market is trending lower and one ought to remain cautious. As a rational investor though, I do believe we are NEAR an exceptional buying opportunity. Keep waiting patiently.
That's all for this week, enjoy,
Brian Beamish FCSI
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