What I Like Most About This Rally

Back in the second quarter our theme was “consolidation and continuation”, meaning we were looking for a market correction that would lead into a continuation of the bull market (See April 20, 2012 “Looking Ahead to Second Quarter”).   Well, the correction we were looking for clearly unfolded, taking the S&P 500 down about 10% between April and June.   More recently, the market has rallied 11% off the June bottom, and it is now beginning to feel like the continuation phase that we were expecting is taking hold.  After an eleven percent run from June, we are forced to reassess expectations for the market going forward so we can position our client portfolios accordingly.