Corrections just a part of bull market

If history has taught us anything about equities, we should welcome the current drop in the stock market. Corrections in valuation are not only inevitable but are essential to a bull market.

This time the culprit is credit and loans from lending institutions. While the problem may be serious, it doesn't mean the sky is falling. Any catalyst causing a correction must have validity, but historically all have been temporary.

In January of 2006, I predicted the Dow Jones would close the year from 11,500 to 12,500. In round figures, this held true. This year, I said the Dow would finish at 13,200 and this too should be achievable.

Recessions happen about every 20 years. Ergo, we have approximately 10 more years to reap the rewards from the strongest global economy in history.

The Dow Jones will celebrate New Year's Eve in 2008 above 15,000. Enjoy the ride.

William D. Mueller

Hoffman Estates