As you may recall our 3rd quarter 2015 Commentary was titled Two Down and Two to Go.  This referred to four events we felt needed to happen as the economy strengthened.

THE FIRST was a -10% correction in the Dow Jones Industrial Average.  That happened in the spring and summer of 2015 when the Dow went from 18,312 to a low of 15,666.  (a -14% drop)

THE SECOND was the Federal Reserve ending the program of Quantitative Easing.  Chairperson Yellen wound that program down in 2014.

THE THIRD was the Federal Reserve raising interest rates.  Janet Yellen, the Chairperson at the Federal Reserve, increased interest rates by 0.25% in December.  We believe the December rate hike was only the beginning of a long gradual process. However, it is at least a start.

THE FOURTH event was the firming up of the price of oil. In December the price of oil once again proved to be very volatile.  In mid-December oil dropped to nearly $35 per barrel and then bounced back. It looks like there’s a lot of inventory to be sold off before the prices begin to stabilize.


We believe it is best to remain invested and well diversified as we wait for these events to unfold.



Sources: Wall Street Journal,, U.S. Energy Development Corp.

These are the opinions of Financial Professionals, Inc. and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Indices mentioned are unmanaged and cannot be invested into directly.  Past performance is not a guarantee of future results.