Information Indigestion

Markets are information digesting mechanisms.  At the beginning of this year, there have been more cross currents of information than usual.  Many investors wanted to book profits from last year creating a potentially negative signal, while the economy sent positive signals of strength.

Earnings have been mixed so far, but only 10% have reported;

so we have not nearly enough to draw much of a conclusion.

As the market digests all this new information, it bounces around.  We believe that the fundamentals are actually continuing to improve and that will be more important to future stock prices than anything else.  In the meantime, we are also analyzing all of this new information.  The best we can say is, so far so good.