Secure Account Login
| Investment Advisor - Market Perspective September 2009 |
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If there is some wood around, “knock on it!” We have passed the half-way mark in Hurricane Season, and are in great shape. Let’s all hold on to positive thoughts to have this trend continue!
We are finding more and more clients wish to receive information faster and, also, want to reduce the unnecessary waste of natural resources like paper products. Over the past several years, we have greatly improved access to your account information using a secure login through our website and the Internet. If you utilize a computer and have an e-mail address which you review frequently, we will be happy to provide you with direct access to your account data through Couture Financial’s website at www.CoutureFinancial.com. Additionally, you will immediately receive all valuable correspondence, like this letter, right to your e-mail inbox. Please contact Lance for details.
We have had a surprising rally in the stock market since the March lows and almost everyone has been surprised that it has lasted so long. This is especially true because the majority of the economic news is still “bad.” I was shocked by the headline the market basically shrugged off this past Friday: “Deficit Soars to $1.38 Trillion in August.” The fiscal year deficit is expected to be only $1.58 Trillion, which is more than 3 times the prior RECORD budget deficit. WOW! In other words, this year’s fiscal deficit will be more than $1.1Trillion higher than the prior record high deficit. How do you suppose we are going to pay for all of this debt?
Most analysts and market watchers have expected another big leg down before we can expect a true long term bull market recovery. It is important to keep the facts in perspective. Product providers give bear markets names; like the 2000-2002 was ‘bursting of the Internet bubble’ and the 2007-2009 was blamed on the ‘subprime bubble,’ etc. By giving bear markets names, it implies these were just one-time occurrences that would not be repeated, and therefore, something to quickly forget and start sending your money back in. They are partially right, in that the cause for this bear market probably will not be repeated. But we will have another bear market; just with a different cause and a different name.
Only time will tell us how to categorize these current circumstances. The important thing we must do is keep a very close eye on the changing economic circumstances and react quickly when the trends change in ways that could cause substantial loss of value in our investments. We continue to have our finger poised over the “EXIT” button so that we can adjust your portfolio, as we have in the past, to protect it from major down trends. As you know, this “Active Management” we provide is the reason we have been able to substantially out-perform the broad stock market over the past ten years with significantly less portfolio risk. I am required to tell you that past performance is no guarantee of future results; but, of course, you knew that already.
As always, if you would like to talk with me or would like me to assist a friend or family member, I am always available. Give me a call.
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