August 31, 2015 - Stocks officially entered correction territory last week, down more than 10.0% from the highs, before rebounding on solid U.S. economic news. While volatility could remain elevated, we believe the selloff is a correction and not the start of a bear market. Bear markets require sustained declines in corporate earnings, which normally only happen during recessions. Recessions typically result from tight Federal Reserve monetary policy (high interest rates) driven by high inflation pressures, real estate bubbles, or capital expenditure booms. We currently do not have these economic imbalances and the Federal Reserve can be very patient with raising interest rates. Click here for the full Weekly Bulletin
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