We were optimistic to have a 'V-shaped recovery’ and that we would have a strong September start. Today was a tough first day of the month, and it looks like we are going to test the bottom of the volatile drop last Monday before the market has any clarity to move forward. We think it will take some time and will act in a volatile nature to get there.
A correction over a longer time period is healthier and more normal than a rapid, volatile correction. This lengthier consolidation period sets the market up for the next move higher in this secular bull market.
We think that the US Fed will raise rates in September, and having that uncertainty lifted from the markets will help us find a bottom and put in the base for the next move higher. We believe the US economy is doing very well, and this correction is not likely to last a substantial amount of time, as they will drag the globe higher.
We will remain cash-heavy and will only allocate new capital to the markets if we really see value. This market will go back up, and we want to buy this dip, but we want to be patient and cautious.
Happy to answer any questions or concerns.
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