Increased volatility and lower market prices have led commentators to wonder if this is a correction, the start of a major bear market, or just a bear (cub) market. However, with U.S. equity markets down in excess of 15% over a very short timeframe, discussing the names that characterize this period is only helpful for financial news “entertainers”. Investors care less about what this decline is called and more about how much they suffered during this uncertain and volatile time.
We have been positioned conservatively, holding substantial cash, through the second half of 2015 and the beginning of 2016. We also