The May Correction

The world equity markets have came off quite a bit from its peak since January. It has been in a correction mode for the past few months. The question that will surely be at the top of your mind is: Are we entering into a bear/ falling trend? I believed that this correction will be temporary. 70% of the US S&P 500 companies have recorded earnings that either matched or beat the expectations of analyst. Oil prices are on the retreat and many major economies in the world are still reporting positive growth. One thing that is certain is that growth will not be as blistering as it was in year 2003. Therefore, it will be prudent to stay invested.

One more thing to add. The correction may be coming to an end soon in the recent months. There may be good returns to be made if a proper strategy is used to enter the market during these months.

One of the events that has directly affected our investors are the downgrading of the credit ratings of Ford and General Motors. A small portion of the IPP Champion bond funds have been affected due to effective diversification by the fund managers. Therefore, the impact on our investors will not be significant. Our investment division has directly corresponded with the fund managers regarding this matters and we are on top of things. Rest assured that IPP does keep a constant lookout on your investments to ensure that our client's money are invested with due dilligence and care.