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In last week’s Reducing Risk post we discussed why we reduced risk in anticipation of a pullback in the markets. However, there are some warning signs which beg the question
“is a larger correction coming?
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A Tough Start
What started out as a promising January, didn’t end up that way as markets dipped into the red for the year. More importantly, February tends to be a weak month which suggests the selling may not be over just yet. Such is particularly the case, as we will discuss momentarily, with many areas of the market technically stretched and over-valued.