Despite sinking 2.2% last week, the Standard & Poor’s 500 has yet to drop the necessary 20% for designation of a “Bear Market”. Still, the popular benchmark is more than halfway there, and as much as we hate to admit it, we should at least consider the possibility that this is the start of something more than your run-of-the-mill correction (a “correction is defined as a drop of more than 10% – but less than 20% from recent highs). But it is important to understand Bear Markets that occur during times of NO RECESSION tend to be shallower and recover more quickly. And, it is extremely important to understand that unlike 2008, the U.S. economy has a very good chance of AVOIDING a recession in 2016. For more information about Bear Markets, click here.

RECOMMENDED ACTION: make sure any portfolio withdrawals anticipated during the upcoming 18 months (from your portfolio) are in more stable short term bonds or money funds. If you are aware (and we are not) of an upcoming withdrawal for a new car, home renovations, second home purchase, etc., please notify us ASAP to make sure the anticipated withdrawal is not invested in stocks or stock mutual funds.