Hello:
Here are the answers to some frequently asked questions:
Do we believe the market will get worse?
Although there are no guarantees with market investing, and although past
performance is not a guarantee for future results, we do see that the Dow
Jones Industrial Average (DJIA) is having difficulty breaking through the
7800 level on the downside for a sustained period of time. There is a high
probability that this is indicating a point of support, unless there a huge
exogenous event, such as a terrorist attack in the U.S.
Do we believe the economy will get worse?
We are seeing evidence of the later stages of an economic downturn, primarily
in the employment numbers. It would not surprise us if the see an increase
in layoffs between now and the end of the calendar year.
Do we expect a quick rebound in the economy and/or in the financial markets?
We are cautiously optimistic, and would be surprised if we saw anything other
than a "U" shaped bottom in both the economy and the financial markets.
Just as "U" shaped valleys in nature are cut ever so slowly by glaciers,
we expect a glacial, but measurable, improvement in both the economy and in
the markets in general.
Is there some action that needs to be taken now?
Action or inaction should be, and in our practice is, evaluated on a case
by case basis. With the markets near a low point, we lean more in the direction
of the prudent buying of high quality investments as opposed to selling with
abandon. We maintain our philosophy of buy low and sell high no matter how
annoying the economic reports become.
Please feel free to contact us for more information or with any other questions.
We enjoy hearing from you!
Terri
G. Millson, CIMA, CIMC
President |
Ray
Dicius, CSA, GEPC
LPL Branch Manager |
11/17/2008