Bears are coming out of the woods lately. Many say: “I told you so.” Are we turning into a long anticipated correction?

I am not so sure.

Yes, the recent Market behavior looked scary:

The markets lost 2% Intraday Yesterday and broke below 50 day moving average. Later on it erased some of the losses.

Today, the market started higher but couldn’t keep up and dipped again. We finished where we started.

 
This market turbulence had a devastating impact on our portfolio too. During the whole month our net-liq grew steadily up and all our positions seemed sitting well in gain territory.

The last two days in the market (the tech stocks sell off) erased it all and we will finish June with substantial loss. Unrealized loss, but loss which makes me uncomfortable.

 
However, I still think this is just another dip. A gift to investors with a plan. Although the stocks lost 2% the US economy is growing and in fact accelerating.

This selling pressure from anxious bears is just an opportunity to buy the dip.

In the last six months, S&P 500 grew by 7% and Nasdaq by 14.4%. That is a good progress. And it seems we will see more uptrend as GDP is again pointing up.

(credit: Hedgeye.com)

In 2015 our GDP peaked at 3.3% and since then, it has been sliding down to meeker 1.3% by the second quarter of 2016. For the rest of 2016 and in 2017 we saw GDP rebounding back up to 2.1%!

Are we to hit 3% GDP growth again?

We have seen a year of accelerating economy and consumer confidence. These will push the markets higher again.