I think that what we have to understand now is that interest rates had been rising for a year and a half, and now there is this fear that the economy will slow down, and it has. Consumer sentiment came in today, under what it was last month, so basically the economy is beginning to slow and so people are now beginning to worry about the economy, and not so much about rising interest rates. |
The environment is very good now. While in fact I'm less exuberant about the large stocks I think the small stocks will play catch up. |
The technology sector has had a tremendous rally since the middle of April and I think it's time for some resting. |
Typically stocks don't do well in the face of rising interest rates so I don't think anyone is going to get rich. |
While I do think the bull market continues, I think we are in a consolidation period, in which I would expect we are likely to have a 6 to 8 percent correction from the peak. |