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Time to Buy

     After each major market decline over the past 70 years it has taken a shorter and shorter period of time for the market to recoup its losses and go higher. The last two market corrections (fall 1998 and fall 1999), have taken less than 90 days for the market to recoup their losses and go higher.

    What did the people who missed the January/February rally say to themselves? "I'm going to jump in when the market goes down and stocks are more reasonably priced. I'm not going to miss the next rally!!" Well, guess what? Here's your opportunity. Investors were buying stocks when the market was at 5,000. They were buying when the market was 4,500 and when it was at 4,000. If they were buying stocks when the market was at 4,000 and 5,000, why wouldn't they be buying stocks now when the market is at 3,000? Who's going to make more money, the guy that bought stocks at 5,000 or the guy who's buying now at 3,000? EXACTLY!!!! After this market rebounds, you may have to wait months or possibly years for the market to correct itself significantly enough to buy stock around these levels again. There are investors out there who wish they could have bought after the 1987 crash, the 1994 crash, and the 1998 and 1999 corrections. Six months from now, investors are going to wish they bought after the April/May sell-off of 2000.

    We've had five ¼ point interest rate hikes over the past 9 months. We just had a ½ point rate hike and we feel that the FED will finish this series of interest rate hikes in June with another ¼ or ½ point rate hike. After that we expect a summer rally because the FED won't meet again until August. Right now we're at the tail end of a correction. There is currently 2 Trillion dollars sitting on the sidelines waiting to re-enter the market. When these funds do re-enter the market I'd rather be invested one week too soon rather than a week too late.


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