Investment Perspectives 2Q July 2013

The investment topic of the year, so far, seems to be the elevated level of the US stock market. In May 2013, the S&P 500 achieved an all-time closing high of 1669. Despite a correction in June, the index closed at the highest quarter-end level in history. Over the years we find that at new highs (and new lows) emotional involvement increases with each session. Experience tells us that the key factor at these high and low points should not be emotional reaction to what has happened but a strong conviction about what is coming next.