Be Careful with your Long Positions

The market is struggling to push higher this week in light of the FED's two day meeting currently in process. Although we believe that interest rates will remain at 0%, it is Ben Bernake's outlook that will be vital to the market performance this week. There are many fears that the market is getting to far ahead of itself and could see a drastic pullback. We believe that the market will indeed see a decent pullback, but not as drastic as the one that hit in March. As commercial real estate begins to come into focus over the next few months, it is likely investors will seek a safer means with their money. Also, it is evident that job losses continue to mount, and although appear to be slowing down, the fact remains there are just not enough jobs being created. As each quarter passes, more and more college students struggle to find work in return putting a harsh burden on their parents that are already under financial distress. We believe the banks indeed are solvent at this point in time, but as commercial real estate adds to bank losses, and job losses mount, banks will once again be under close watch. There are banks that will still fail, companies that will need bailing out, and additional government spending required. We will be taking profits and limiting positions over the next few weeks allowing the market to find its direction. Be careful in getting caught up in the market hype, and make sure you do your own due diligence. Keep an eye on real estate reports, retail sails, consumer confidence, and personal savings in order to get a true feel of where we stand. The double dip recession is not something that is definite, but another market scare could be in the works.