We have officially entered “Hurricane Season,” but it is still very early to worry too much about storms.  I sincerely hope that the crazy weather around the rest of our country does not portend what we should expect for the next six months here in beautiful Sarasota.

The stock markets are imitating the national weather lately with lots of volatility and bad news.  The correction (which began at the beginning of May) has continued and our domestic stock market is down (as of June 24) approximately 7% from its recent peak of April 29th.  One of the analysts from whom we periodically receive data – John Rhoads – wrote the following in their recent newsletter:

Bad news seems to be the norm everyday and the current string of bad economic reports is not helping us feel any better about the future. Ok the world did not end last month, but if you’re unemployed it might feel like it did. Over 9% unemployment is just pathetic and has not gotten better for years. Jobs are the key to good housing numbers. People who are unemployed don’t buy houses and people with jobs just don’t buy new houses if they don’t feel good about the future. Housing starts always lead in economic recovery. The current reports make that look very dismal. New debt is piled on top of old debt, when will it end? No one in Washington seems to have a clue. No real serious effort to solve these very real problems is coming anytime soon. The main concern of our politicians now is getting themselves reelected; not dealing with the current mess our economy is in. If you have been to the grocery store lately you know that inflation is on the rise even if the Government denies it. The price of any basic food type like coffee, flour, and sugar will tell you the story. It will be months before the reports say so but we the consumers know now. I am an eternal optimist and usually see the big picture but we got trouble. As they said in the musical (The Music Man) “We got trouble right here in River City, we got big trouble.”

The latest research data we are receiving is trending more toward the downside for the market outlook even though some still think that the correction may be over and expect the market to recover soon.  As you have probably noticed, we have reduced your exposure to stocks to protect the excellent profits generated so far this year and we will continue this conservative stance until economic circumstances begin improving.  As I am writing this Update, our managed accounts on average are outperforming the broad stock markets year-to-date and as I said in last month’s Update, “This is another great example of the value of our Active Asset Portfolio Management.” Of course, you already know I am required to remind you that past performance is NOT a guarantee of future results.  All investments have risk and may gain or lose value over time.

We track the global market trends constantly and will continue to do so every day they are open for business.  We greatly appreciate the trust you place in us and we strive to do everything in our power to provide the reduction of risk and enhance the potential for improved profits that you have come to expect from us.

I am always available for discussions, so do not hesitate to give me a call if you wish to chat about anything.  Have a wonderful summer!