We mentioned a couple of weeks ago that the tape, or the market, was acting very poorly and did not feel well. The S&P 500 was down about -3% for the month of January, with the worst performing sector being Financials down around -7%, and the best sector was Utilities up about 2%. We believe the financials are very oversold. The market is off about -4.5% from its recent high. As goes January so goes the market which has been about 89% of the time since 1950. This would imply a negative year for the stock market in 2015. We are in the camp that it is likely the markets will struggle in 2015. What we are pondering, do we get a bounce back to the old highs or higher before the prospects of flat to down earnings and high valuations really set into the investors’ psychology?

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Market in a Minute 2015-2-3