Election Resolved, Market Down

The good news is the elections are now over. Just the fact that decisions have now been made is better than living with the uncertainty. Nonetheless, the market tumbled today 5.3%, giving back all of the gains from the prior day and then some. We are not particularly surprised at the fall today in part because of the large advance on Monday. The economic news that was released today was not good as employment continues to deteriorate and activity in the services sector clearly shows contraction. Frankly, this is no surprise, the economy is not doing well and in our view, will continue to struggle for some time. However, we still think the stock market is at attractive levels, although it could easily see saw back in forth over the short term. We still think now is a good time to buy. We have our eye on EMS, the stock is currently a little overextended, but if it falls a little more we are going to buy.