This has been one of the most volatile years in equities and commodities that I have seen in quite some time and I can only hope that the month of December brings some stability to the marketplace. The S&P 500 is up almost 10% so far this year but not before we have witnessed plunges of 16% with rebounds of 9% and that is just since April , whew not for the faint of heart. Even if you are a long term investor these types of market extremes are not easy to endure. As the year winds down the $million dollar question now is, are stocks overvalued? While corporate profits as a whole have been very impressive this year and 2011 portends to be another growth year for corporate earnings, one has to ask have the markets gotten ahead of itself? My view is as long as their are concerns about the economy, the housing market and Europe we will continue to see volatility in equities and in some instances extreme volatility. However I continue to expect support on pullbacks and healthy corrections which has been the pattern for most of the year.

Have a great week.

~George