We’ve been writing about the increasing likelihood of a correction, either through time or price, after the stellar rally since the March 2009 lows – and we’re certainly seeing an increase in volatility.

Trying to catch each move in the equity market, however, is a near-impossible task.  Who could have foreseen the stunning election results in Massachusetts, which upended the balance of power in Congress, or the Greek banking crisis – both of which impacted near-term market action?

We remain optimistic regarding the equity markets during the longer term and the economy in the near term, but recognize that increased volatility will likely characterize 2010.  Investors should use this opportunity to check their risk tolerances and ensure that their asset allocations are appropriate.