Separating the Wheat from the Chaff

We haven't separated the wheat from the chaff yet. Market performance on Friday and Monday confirms we still have sorting to complete. Companies such as GM and Chrysler still have to demonstrate they can stand on their own or fall into bankruptcy. The markets still need to demonstrate they can withstand such an event and banks still need to demonstrate they finish the strong January-February results. None of this has been accomplished, so while market performance over the last 3 weeks has been uplifting, it's still incomplete. If any of these items, and these are just a few of the relevant issues, are deemed failures, we'll revisit 660 and probably plumb the depths of Jeremy Grantham's original call of 600 on the S&P 500. There is still much work to be done before we can look back with hindsight and acknowledge we hit bottom and are moving uphill. As I've said before, carefully cost-averaging back into equities is a responsible action right now but don't forget high-quality corporates and alternatives as opportunities. (As always, understand your own financial position and risk tolerance and incorporate these issues into your decision making process).