Good morning! It was quite a wobbly week last week, and with the main US Indices continuing to fall after London closed on Friday night, more jitters should be expected today. Although I note that the FTSE 100 Future has recovered fron an overnight low of down another 120 points, to currently (07:16) being down 38 points, indicating a start at about 6,618.

I see a pullback as being both necessary and healthy - there has been an element of euphoria in the market of late, which needs dampening down, otherwise a bubble builds up with speculative valuations, and we all know how those end.

I am hoping that there will be some good buying opportunities this week, as hopefully some weak holders in good quality small caps will panic and sell at a daft price, so I can deploy my reserve cash and grab some bargains. I don't believe there will be a crash, but a correction is certainly needed. It's true that many shares are currently expensive, and valuations need to come back down to reality in some cases. However, with the macroeconomic picture now looking brighter than at any time since 2007, warm valuations on a PER basis are in many cases justified, since earnings could & should rise rapidly for cyclical companies.

Note that previous market crashes (e.g. 2000, 2008) have occurred at the end of a sustained (5+ years) period of economic buoyancy, and in anticipation of sharply falling corporate earnings. We're currently in a situation that's the opposite of that, with a recovering economy, and probably being at the start of a good period of economic growth. That doesn't strike me as a likely time to have a bear market.




Albemarle & Bond Holdings (LON:ABM)

I've repeatedly warned readers here that the situation at Albemarle & Bond was looking extremely dicey - with a mass resignation of Non-Execs in early Dec 2013, and current trading being at an EBITDA loss, it seems clear that the most likely outcome is probably a pre-pack Administration, which would probably leave nothing for shareholders (since in a pre-pack the profitable bits of a business are usually sold for peanuts, and the proceeds used to repay the Bank.

The company seems to be be moving closer to that today, with an