After advancing 8 of the previous 10 weeks, stocks experienced a correction last week, with the Dow Jones Industrial Average losing 1.6% to close at 9,665, the S&P 500 Index declining 2.2% to 1,044 and the Nasdaq Composite falling 2.0% to 2,091. Nevertheless, barring disastrous market activity over the next few days, September should mark the seventh consecutive positive month for stocks.

The Federal Reserve met last week and kept the benchmark Federal Funds target unchanged at a range of between 0% and 0.25%, but indicated that economic conditions have to conitnued to improve. The Fed also retained the message that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period". As such, we have no expectation that the Fed will begin tightening policy anytime soon. 

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