Hello:
The financial sector dragged the overall stock market down last week for a
variety of reasons. Goldman Sachs downgraded regional banks and estimated
that U.S. banks in general will have to raise another $65 billion in capital
to counter more expected losses and writedowns. Perhaps in response for letting
the cat out of the bag, another Wall Street firm downgraded Goldman Sachs'
stock rating.
Banks need to keep a certain ratio of reserves to loans. If they are required
to lower the value of mortgage backed securities, then their reserves appear
smaller, and so the banks need to raise capital. This is a situation we have
been monitoring for a while, and were wondering when it would affect the markets.
Our estimate is that the Dow has a risk of perhaps as much as down to 11,000
or so, but probably not more than that.
Do you have other advisors and are they giving you the
quality and quantity of advice that you receive from TriSummit? Perhaps this
is a good time to organize and consolidate your portfolio in order to get
a firmer grip on your wealth. Please feel free to contact either Ray or myself
for more information!
Terri
G. Millson, CIMA, CIMC
President |
Ray
Dicius, CSA, GEPC
LPL Branch Manager |
06/23/2008