Markets have recently reached new highs. This is making investors reasonably cautious, since we are about to enter the traditionally weakest time of the year. It is generally thought that October is a bad month for equities; however it really is September when markets have gone awry historically. There is only one month in the history of the S&P that has averaged a negative return since 1926: September. While September could potentially be tough, this year the market does appear to have some good legs, as corporate earnings have rebounded. The more recent weakness in the US dollar is also a big help to the multinationals in the US. We believe the markets will have a dip, and if anything comes out of the federal government (such as tax relief), this could help sustain an expensive S&P valuation.