Stocks sold off sharply this past week as a myriad of issues that were once back burner moved to the front burner not the least of which included rising interest rates, stronger than expected economic growth, the new Fed chair, domestic as well as international political/geopolitical concerns and just perhaps a too confident President. Last week we noted “we do not believe that interest rates pose an immediate threat to stock market valuations. However, equity investors must be cognizant of the slope of the yield curve and the pace of the rise in interest rates. We believe a gradual increase would be viewed positively while a rapid one less so.” What’s an investor to do? Make certain your asset allocation conforms to your objectives as well as tolerance to risk. Circle the wagons. Reduce peripheral holdings and concentrate your portfolio on those in which you have the greatest level of confidence. At this time we believe this will be a garden style correction as too much complacency and dare we say arrogance had set in. Look for equities to stage a meaningful rebound as we believe the bond market will settle down if not here, in the proximate vicinity. Mostly, don’t panic. Panic and hope are not helpful strategies. For now, we continue to be tilted toward the optimistic side. Stay diversified. There is no need to be a hero. Your portfolio must be measured against your long-term objectives with long-term capital being allocated accordingly. Do not be caught up in the day-to-day noise of the markets.