Market Updates

After many months of strong equity growth, the stock market is showing signs of weakness. Over the last several weeks, commodities have
been declining as the dollar began to gain value against other currencies. Internally, market‐down days are occurring on higher selling volume than corresponding up‐market days and institutional money flows into stocks have primarily been into defensive and consumer staples positions. It is not uncommon for this type of activity to occur when the market "needs a rest". This kind of rotation by institutional mutual funds tends to occur because managers need to invest the money they get in, but prefer to do it in positions that, "should lose the least" in the event of a market decline.