Since Moby Dick was a Minnow...

Wow, it's already the second month of the new decade! All four of our Fireside Chats were a huge success! We are pleased to see that so many of you value the educational service we offer. We love the Winter Fireside Chats because we are blessed to be able to visit with so many clients in such a short period of time. We truly look forward to many more times of "chatting" with you.

It's been happening for years: the market rises slowly and then corrects sharply.  It is sometimes painful to watch: our portfolios eke out small gains after small gains, only to give back 10% of these gains in a few days. It may "feel" like new market behavior but, folks, it's been happening since Moby Dick was a minnow. The investor sentiment goes from "let's buy dips" to "it's going to be Armageddon" very quickly. This is exacerbated when the memories of 2008 - early 2009 are so fresh in our memories.

As of this writing, the market has quickly moved into "oversold" condition. This means that many stocks - including some of the stocks and ETFs in your managed accounts - may have already sub-stantially corrected. We will not know for sure until either the uptrend continues, or our stops are hit on any particular assets. The market is off about 9% from its 16 - month high just a couple weeks ago. We are expecting a 10 - 12% pullback; which is completely normal in this kind of environment. Buying can take place over time, but selling often needs to be "carefully strategized."  In CB3's case, that is why we always trade with stops.

In my experience, a market pullback brings out the best in people, even if that "best" happens to be in an attitude challenge. The bears are now "claiming ownership" of the next 40-50% move they expect to the downside. I simply do not see that scenario, given the favorable fundamental investing environment. You can view my Winter Fireside Chat video online at cb3.com. Remember, the worst day of a correction is often the "last" day as the market shakes out the weakest bulls. We see significant support at 9,600. I don't expect to see that level hit this year.

As you know if you have attended our recent Fireside Chats, with the striking of the clock on January 1, the new Roth IRA conversion rule came into effect. There are many salient issues on this "opportunity" from the I.R.S. Please visit our website (cb3.com) to view my video on this IRA conversion and its benefits and potential drawbacks. Please call Lory if you would like to meet with me or Chris to discuss your specific situation.

Until the next time...

If you know someone who could benefit from our services, please direct them to our website (cb3.com), or have them call or email Lory at lharris [at] weg1 [dot] com. Be assured that Chris, I and our team are watching your accounts daily, as we evaluate how to best serve our client's investment objectives. We will be here with you all the way. Please feel free to call or write cbrown [at] weg1 [dot] com or cbreitenbach [at] weg1 [dot] com with either questions or concerns.

Until next time,