Quarterly earnings reports from many big companies and other economic data suggest that any economic recovery is at best puny. Inflation is a little higher but it is within the Fed's 2% target.
So what's an investor to conclude from all this? Don't panic, and if it makes you feel better, sell some winners, cut your losers or tighten your stop losses.
Remember if the stock market corrects another 7% from Friday's levels, it would still be up 8% for the year. Even a 10% correction would most likely be a great buying opportunity for investors waiting for a substantial market dip.
Questions abound about whether the Fed will decrease its bond buying may be partially answered when the Fed releases FOMC minutes, although the question remains about who the next Fed chairman will be and whether that person will change the Fed's policies.What the Fed will do to carefully reduce its monthly massive bond purchases is a source of angst. Yet there are some comforting cluess.
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