Market Timing Update

My Guru  says that we are in the middle of a market correction.
No Big Surprise there.

It is somewhat similar to other corrections in presidential mid-term
off-presidential  election years and is a normal occurrence within the context
of an ongoing bull market.

He expects to see substantial additional gains which should carry the
market to new recovery highs in the mid 1300's for the S&P.

He views S&P 500 levels of  1250 or lower as attractive entry points for
the investment of any new monies.

Economic Cycle 

    Rate of Growth Moderating
    Low Inflation
    Monetary Growth Anemic

Monetary Policy

    50% Chance of Another Interest Rate Hike
    Foundation of an Economic Slowdown is Firmly in Place
    High Oil Prices are Counter Inflationary.  They drain discretionary money
       from the consumer pocket book.

Valuation

    The S&P 500 Index is undervalued at a P/E of 15.8.  A fair value would
        be in the range of  17 - 18
   
Sentiment

    The contrary indicator, the 60-Day Put/Call ratio has risen to record levels.
    The Wall of Worry dominates investor sentiment.  That is a good thing (I think).

            Current Worries:

                       Inflation Worries could cause the Fed to Over Tighten
                       Higher Oil Prices
                       Recession
                       Mideast all out brawl.
                       Iraq Civil War
                       Major Hurricane Season  

Summary

    Buy on Market Weakness.

Other

    No portfolio changes were called for.  My Guru is still a happy camper