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| Investment Advisor - Market Perspective February 2010 |
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Hello from sunny Florida! As I write this letter, I am looking out my office window to see the beautiful sunny blue sky and people wearing coats because it is very chilly here. I know I shouldn’t complain because I am certainly thankful I am not in New England right now, but I just don’t like cold weather. The good news is that this weather shouldn’t last too much longer and then we can get back to enjoying our beautiful beaches and boating on our great waterways.
If you have been watching the stock markets around the world you are aware that we have been experiencing a “correction” in most countries, including the US, for the past several weeks. The question is, of course: “Is this the beginning of the next leg down in the recent Bear Market?” Depending on to whom you listen, the answer is Yes – Maybe – No. Which do you prefer? This is, of course, one of those issues we will never know for sure until it runs its course and we can then clearly see what the trend was. Unfortunately, that doesn’t help us while we are going through it; and in fact, if it is the leg down, it can cost us tremendous lost value in our investments.
As you know from our conversations and much correspondence over the past year, we are tracking the markets very closely every day in an effort to determine any changes in the trends. When we recognize those changes, we re-allocate your investment accounts automatically and quickly to maintain that safety factor you have come to appreciate from our services. Over the past several weeks, we have again done just that. Because of the elevated risks in the economic circumstances worldwide, we have reduced the actual exposure to stocks by approximately two thirds of the capital that was invested in domestic and international stocks.
All of the technical analytical firms we work with have moved into the very cautious camp, as have I. If this is just a correction, we may move back into the markets shortly. However, until we see a fairly clear return to an up trend, we will remain on the side of caution.
Recently, I have seen a number of articles in various Financial Publications that talk about the concerns many people have about communicating their financial situation to their children and family members. According to these articles, many individuals would like to have their family be better informed in case something might happen to them, but they may be uncomfortable disclosing too much information they feel is private. We have assisted a number of clients over the years very successfully in communicating with their family members. Sometimes that assistance has been as simple as getting acquainted with the family members and letting them know that if anything happens we are prepared with the necessary information to help.
If you ever have similar concerns, please keep in mind that we are ready and able to assist you in any way you feel would be helpful. I am always available to talk with you about this or any other issue that is on your mind and, of course, I invite you to tell your friends and family about our services.
Sincerely,
 Phil Couture, President, CFP®
Couture Financial, Inc.
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