FRIDAY SEPTEMBER 18, 2009

Correction Time

There seems to be two schools of thought in the marketplace concerning the stock market.  One school states that the market has come too fast, too soon and is due for a correction.  They argue for a correction of at least 10%, pushing 20%.

The other school states that the market has just begun its rise.  They cite a bevy of recent economic statistics that are showing strength.  They note that investors are tiring of receiving .25% or less on their cash positions.  Those investors are moving that money into higher risk asset classes.  This movement will provide further fuel for the markets recovery.

I can argue both sides of this battle.  Pretty bold of me, isn't it!  In truth, I (and nobody else either!) have no idea when or if the markets will correct.  However, I expect that it will.  If it doesn’t, happy day!  If it does, I will be mentally prepared for the evitable.

POSTED AT 1899-12-30 11:05:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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