Corinthian Market Update
by Dave Samuels
After forming a bottom March 9th, the market has bolted up nearly 40% (see chart above). Over the short term, we still hope for some more upside in the market. However, we are keeping our guard up, as we feel that many of the same risks that we have addressed in our previous correspondences persist-a falling dollar, high unemployment, high deficit and the threat of inflation. At CWM, we have been scaling back some of our positions and adjusting our alerts.
We have been receiving inquiries regarding investments promising high yields/dividends. With CDs and treasury yields at near record lows, high yields may look attractive. We remind people that high yield correlates directly to high risk. Many of these high yield investments fell in step with the stock market last year. It is important to be prepared to take on additional risk if you are targeting higher returns.
We look forward to continue serving you.
