THE MARKET IS OUT ON A LIMB

We end with a word about momentum.  This month was the best September for the market since 1939, when the Dow was up 11.1%.  Yet, the market dropped 30% by June 1940 and 41% by April 1942.  The September 1939 top was not reached again until June 1949, almost ten years later.  The market was also up 9.7% in March 2000, before dropping more than 50% over the next 2 ½ years.  Momentum can, and sometimes does turn on a dime, particularly when not supported by fundamentals.

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