Dear Valued Friend and Client:

August 20, 2010

If you recall, the National Hurricane Center had predicted we were to have a very active hurricane season this year.  Well, here we are almost in the middle of the 2010 storm season and -- so far so good -- not much activity!  Let’s all keep our fingers crossed and hold onto positive thoughts.

Actually, I think the “storms” have been running rampant in the world’s stock markets.  We are about to complete the third year of wild market unpredictability. As I am sure you know, our domestic stock market (as measured by the S&P 500 Index) is down year-to-date several percent; and, continues down close to 30% since October, 2007.  In fact, for the last 10 straight years, the broad market has been in a loss position.

I am truly pleased to inform you that our clients’ portfolios have performed much better and continue to do so.  The accounts we have managed for this entire 10 year period, on average, have generated excellent profits as compared to the losses of the S&P.  This is another great example of how well our “Active Asset Management” methodology serves you.  I am required to tell you that past performance is no guarantee of future results and all investments may go up or down in value over time; which, of course, you already know.

The majority of information we receive from our technical analysts is beginning to slant toward the probability of stock values trending upward for a while, perhaps even until the November elections are completed.  Regardless, whether this actually occurs, there is no doubt in my mind that our politicians will endeavor to do everything within their “bag of tricks” to bring about this trend. We shall see!

Based on this analytical data, we are beginning to move very cautiously back into stocks and are constantly tracking how the markets are responding.  Rest assured that we will make any adjustments to your portfolios that appear to be appropriate as economic circumstances dictate.

I would like to take this opportunity to, again, personally Thank You for the many wonderful referrals of family and friends you have recommended to CFI over the years.  We continually search for ways to improve the services we provide and look forward to many more years of providing superior portfolio management expertise to you, our most valued clients. For the first time in quite awhile, I am including our “Referral Sheet” with this month’s update letter.  If you know someone you think might be interested in Couture Financial helping to protect their assets and preserve their capital, please supply their information on this sheet and return it to us.  I will give them a call with, as you know, my very low key -- no pressure approach to see if we might be of any assistance in providing investment planning advice.

I am always available to discuss items of interest to you.

In the meantime, have a wonderful rest of the summer!