Tuesday, February 27, 2007

Much-needed correction finally arrives

Today the S&P 500 fell 3.5%, putting it more than 4% below its closing high of 1458 last week. The last time the market saw this kind of dip was July of last year, and that was a great buying opportunity, as the market has since risen more than 17%.

Today's dip should also herald a good buying opportunity. Past corrections have dipped from 5% to 10% below previous highs, so I'll wait for the S&P 500 to dip below 1385, down to around 1350, before I transfer my savings out of bonds and into high-powered stock funds.

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