The Siena Investor - Winter 2014

What to Do if the Bear has Emerged From Its Hibernation It seems like investors have had plenty to worry about recently, even without considering the last few weeks of stock market volatility. After all, we’ve seen: Slowing growth in most of the developed world, including the possibility that European economies will enter their third recession since 2007.

  • Growth in China’s economy decelerating faster than expected.
  • ISIS on the march.
  • The end of the Federal Reserve’s bond buying program, and the accompanying threat of rising interest rates.
  • A rising dollar’s negative impact on the competitiveness of U.S. manufacturers.
  • “Sky high” valuations as the Shiller CAPE 10 rose to over 26 (versus the historical average of 16) and still remains at about 24.
  • Nervous investors anxious about the threat posed to the global economy by the Ebola virus.