Stocks started the year as they ended 2015, in a rocky fashion as several economic as well as geopolitical events over the past quarter or so as created an environment of uncertainty, the arch enemy of investors. Specifically, we will cite the economic issues in China (low PMI numbers), the recent terrorist activities in Paris and San Bernardino, the reported detonating of a hydrogen bomb by North Korea and the flare-up in tensions between Iran and Saudi Arabia over the execution of a Shiite cleric, the recent hike by the of the Fed Funds rate and finally the heated political rhetoric. We have always said that investors should pay attention to the downside and the upside will take care of itself. This time is no different. After the historical run-up off the March ’09 lows, we think it prudent to pick your spots when investing, specifically as it pertains to the price of the security as well as the value of the broader market. Keep in mind that we believe that monetary policy accommodation will remain easy longer than Wall Street is currently expecting. We have often stated that the level at which corrections begin as well as the severity of such a pullback are impossible to predict. Let us also add to that “the catalyst….” Don’t buy long bonds. Stay with intermediate as when rates do rise, the yield curve will most likely flatten a bit.