10/06/2008

Hello:

Now that the world has decided to throw in the towel on the global financial markets--
Now that the Dow Jones Industrial Average hovers around 500+ points down--
Now that T-bills are trading with a less that 1% yield--

We may be nearing what is called the capitulation phase (CP) of the financial markets. The CP is marked usually by a high volume sell off coupled with very negative market sentiment. If the market is not in the CP, it may be very close.

In contrast, Warren Buffett, one of the wealthiest investors in the world, was reported to be investing (buying) last week. Maybe he believes that prices are low enough to be attractive. Hmmm....

As you might guess, our phones are ringing these days. We are doing our best to take and return calls as efficiently and effectively as possible. We appreciate your interest in the global financial markets and their relationship to your portfolio.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager