Last Week’s Market Slide a Dress Rehearsal: Searching for Alpha for March 2011

As I mentioned in last week’s blog on AdvisorOne, the Libyan-inspired pullback in stock prices in the last full week of February is an event that needs to be strategically considered. After such an impressive stock rally in the month and year to date, a dip in prices is to be expected. Successful advisors will form a plan to take advantage and redirect portfolios.

Due to fundamentals, I still consider any pullback to be an opportunity to pick up some higher beta positions which may drop precipitously in value. One potential area of opportunity may be emerging markets, as their underperformance versus tech stocks may augur for a switch from the latter to the former.