Secure Account Login
| Investment Advisor - Market Perspective May 2009 |
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It seems summer has arrived a little early this year and I hope you are enjoying the warmer temperatures. We have even received some much needed rain over the past couple of days. Hopefully, we will receive enough to bring our region of Florida out of the persistent drought.
The first thing I want to accomplish with this Update Letter is to convey our annual offer to provide you with a copy of the current “ADV Part 2” document which we file with the Securities and Exchange Commission for our Investment Advisory Registration. If you would like to receive a photocopy, just let us know. We would be more than happy to provide one to you.
The second item is to remind you to let us know immediately if you wish to make any changes in your investment portfolio, if your financial situation has changed; or you want to place any restrictions on the management parameters that are being utilized. Also enclosed with this letter, you will find the required copy of our Privacy Policy.
Even though the economy is still in recession and declining, we are beginning to see signs that the stock markets and business outlooks are beginning to improve. This, by the way, is actually fairly normal. Generally, the stock market begins improving about six months before a recession ends. As of Friday’s close of business, the U.S. markets’ stocks were still down for their year-to-date values. However, since March, the market has recovered most of its losses for 2009. Last week, we began to very cautiously move back into market positions. In both stocks and bonds, we have increased our domestic and international positions in the areas most likely to experience the best profitability.
We were able to avoid most of the early year losses in our managed accounts and, in fact, our most conservative portfolios have a small profit so far for the year. Our performance for the “Bear Market”, which began in October 2007, remains excellent (much smaller losses) compared to the S&P 500 Index. It is possible we may see another down leg in this market before a sustainable long term rally actually occurs. You may rest assured we will remain diligent in our research (both fundamentally and technically) with our consulting analysts. As we have in the past, we will adjust your accounts as necessary to keep them protected from the more severe market fluctuations.
Call me with any questions and/or if you wish to make any changes as mentioned above. Tell your family and friends about the excellent service we are providing for you and let them know that we would be happy to provide the same for them.
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