U.S. equity markets had a stellar 2013, posting their best performances in years, and while they've gotten off to a lackluster start in New Year not all hope should be lost.
The S&P 500 rose 29.6 percent in 2013, while the Dow Jones Industrial Average gained 26.5 percent, marking their strongest performances since 1997 and 1995, respectively. However, their 2014 performances have been lackluster thus far; as the first month of the New Year draws to a close the S&P 500 is down 3.5 percent, while the DOW is down nearly 4.4 percent. Still, investors should not lose hope.
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While the DOW's retreat is sudden and large, it is not unexpected. A 10 percent correction in the DOW is consistent with a continuation of the long-term uptrend, and a test of technical support near 15,000 would present a buying opportunity.