While we ended last year discussing cash as a valid short term allocation of assets, we had mentioned that the outlook for 2014 was cloudy. Given the uncertainties with future Fed Policy, unemployment numbers, and markets making all time highs, we had expected some uncertainties. As the end of the 1st quarter of 2014 has come to pass, the markets truly were choppy.
On a price index basis, after peaking at a close of 1848.38 on January 15, 2014, the S&P 500 index declined to close at 1741.89 on February 3, 2014. This decline measured in at a negative 5.76% over a dismal 14 day trading period.