Calm Waters ahead?

The past three weeks have probably been the strangest shift in individual investor psychology we have ever seen in our 24 years of investment experience. We went from a calm steady market to almost complete panic in three weeks. We now believe the market is trending to a more stable period ahead. To illustrate our point, consider the VIX, a widely followed index that measures volatility in the market The VIX was selling just below $16 on April 21st. Last week it peaked out just above $47 – a 300% rise – and is slightly above $30 – a 35% drop – today. The falling price of the VIX is a sign that volatility is coming down. That is a good sign. The last time the VIX was above $47 was in March 2009 and it gradually fell in price until April 21st of this year. Even though we had a good pop in the market yesterday, we are more encouraged by the fact that the volatility level is falling. The fall in volatility, an oversold condition and bouncing off major support are all good signs that the bull run that started in March of last year has not yet peaked.

Time to remember and thank our Soldiers

This weekend we at THOR will be remembering the sacrifices of the proud men and women that have given their lives for our country. This Memorial Day we will especially remember Jenna’s brother-in-law, who died in Afghanistan, and Brando’s sister’s boyfriend, who died in Iraq. It is because of their sacrifice that we as a nation are free. Not only do we remember the fallen, but we also give thanks to all our clients – and their family members – who have served (or who are still serving) in the military. Thank you.

Gratefully,

Your THOR Team