Since the lows of last November, North American financial markets have come alive like a phoenix rising from the ashes. The welcomed 50 bp rate cut by the Fed was really a cherry on top of the sundae. The real story is the marked change in the tone of Fed Speak.

If it were not enough that investors are digesting less than stellar second quarter earnings, they are also dealing with the mixed seasonal patterns unique to August. August tends to be a mediocre month for stocks, with no strong directional bias.

When we think about value stocks, we think low price to earnings multiples and above average dividends. It makes value stocks ideal candidates for retirees seeking regular income with limited downside variability.