Life after Goldman’s fall

Looking into the future market conditions, I am less optimistic about the future of the current rally.  I think that any profits should be taken and positions in the financial sector should be pared back as well.  The issue with Goldman Sachs being accused of fraud by the SEC will not go away as easily as it would have, say 3 years ago.  This will give greater strength to the argument that there needs to be more regulation and separation of powers that is already bouncing around Washington.  With healthcare out of the way and the Easter recess over this is the first big topic to come into light since then.  These allegations will affect the market more than some might expect and I think it would be a good idea to pare back risk or at a minimum, refrain from increasing it.  You only have to look back to February to see what regulatory reform talk can bring to the marketplace.