May was a relatively good month for the stock market. All the indexes we follow were up for the month (Dow +1.05%, S&P500 +2.15%, NASDAQ +5.32%, Russell 2000 +5.01%). But the major indexes (Dow and S&P) remained in a narrow trading range they’ve been in for several months. The Dow’s current 24,416 is still over 8% below the all-time high it reached on January 26 of 26,617. But some of the newsletters I read are expecting June and July to be good months, with the chance of a new high being reached. But we remain cautious. We know the stock market remains highly priced, even though it can go much higher on nothing but momentum. And nobody rings a bell when the bull market is over. We see a downturn as temporary, and in the whole scheme of things, all bear markets in history have been temporary. But that “temporary” downturn can be pretty scary. We remain committed to managing our client assets to limit the potential of a severe pullback in values. It’s not fun right now, for either us or our clients, because when we do that, we inevitably miss out on some of the gains made in the market. But we believe that in the long-run, we (and our clients) will be rewarded for their patience and our effort.