The stock market measured by the S&P 500, fell last week for only the third time in 14 weeks. The stock market has rallied about 40% off of the low, but still stands 40% below the peak. Is this modest decline a chance for those that have been waiting to buy on the dips, or should the weakness be seen in a more negative light as the start of a full retest back to March lows?

We believe the markets are undergoing a healthy process of discovering – then retreating from – the thresholds at which key factors may begin to have a material negative direct affect on consumers and businesses. The fact that this process is taking place without explicit policy action demonstrates that the markets may be coming off of the Washington life supports machine.