This last week was a very interesting week, to say the least.  We had the State of the Union address, which I did not get to see, followed by a market selloff.  Part of the reason for the selloff may be an old Wall Street theory of buying on rumor and selling on news.  My take is that some of the selling was purely profit-taking and some may be attributed to fears of rising inflation and rising interest rate increases.  But, as far as the Dow Jones Industrial average was concerned is was a drop of 2.5%.  If we step back and look at that -2.5% one day drop, it is barely a rounding error based on how far the market has come.  Since March of 2009, the equity markets have risen steadily.  A market correction was waiting to happen.  (Market corrections are defined as a 10% drop.) Most, if not all the economic numbers were all good.  Jobs report was steady, unemployment was steady and average hourly earnings were up for the first time in who remembers when. (I had selected a Wall Street Article to send with this week’s digest about this topic but, if you clicked on the article, you would have had to subscribe to the Journal.)

I traveled all last week and got a chance to meet with many financial advisors from across the US and Canada.  It was a good experience in that I was able to get a broad perspective of what was happening in many areas of the country.  With the migration from company sponsored pension plans to 401(k)s and other self-funded retirement vehicles, there certainly is an uneasiness about the future of getting and being prepared for retirement.  I have a video on my web page,, that you might want to visit and see a generic presentation of what our investment strategy is.  Just click on the highlighted BFlex Curve at the bottom of the page.  Should you have any questions, please don’t hesitate to call.

Since the Phil, the ground hog turned once-a-year weather prognosticator somewhere in Pennsylvania saw his shadow (when doesn’t he) and predicted 6 more weeks of winter, I wanted to give you something warm for those cold winter nights.  Check out the article “Warm Up to Winter with These Hot Chocolate Recipes”.  I am definitely going to try the Peanut Butter Hot Chocolate, if only I can convince my wife to make it.

Not sure what’s going to happen going forward so all I can do is to wake up tomorrow and make it the best day I can.  Hope you do the same.

Doug Alden 

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