Market Valuations
Earnnings season is well underway and the news isn't good, earnings have been caught in a downward spiral ever since profits peaked a year ago and the chart below illustrates an ominous trend. Since the last 50 years whenever earnings dipped below -10% (as we are now) the market undergone a major correction of least a 20%.

2016 presidential election
Adding to the drag on the market is the upcomming US elections which tend to be historically negative to the market (when electors must select a new leader) as in this election, and now the R (recession) word on so many lips, all in all a cautious approach is probably the most prudent for the next few months at least.

Dick Van Winkle
Some may argue that things are different this time the feds obsession to keep the leaking ship afloat at all price and they will probably be correct in thinking so, but just as in the Dutch mythical story of a small boy “Dick Van Winkle” passing a dyke on his way to school noticed a slight leak as the sea trickled in through the small hole. The boy poked his finger into the hole and so stemmed the flow of water knowing “a small trickle of water soon becomes a stream and the stream a torrent and the torrent a flood sweeping all before it”

The Manager, Fidelibus Lucrum, Pooled Investment Club.
24 July 2016. 09.30 Eastern.