Hi Everyone,

The last couple of months have been difficult ones for the stock market. Your recent statements are certainly testament to that fact. The Dow Jones Industrial average has plunged more than 8% from its high this year and the Nasdaq Composite Index is down more than 11% from its 2006 peak. Our results are a fraction of those losses, but they are still of a magnitude to make us take notice.

So what to do? My advice is to sit and reflect. This is not some recommendation to meditate away your anxiety, but rather a suggestion that this may be an appropriate time to review your risk tolerance. What’s happened in the markets lately is not uncommon. From time to time the markets will go down unexpectedly or “correct” (Wall Street speak). This has been going on for as long as records have been kept. The only variation is how far the markets go down and how long the downturn lasts. History also tells us that the markets always recover and go on to subsequent highs.

So what should you do now? Think about how this market turbulence makes you feel. If it’s cause for sleepless nights, then when the markets do recover it may be time to reallocate your portfolio to a more conservative position. If it’s unpleasant but palatable, your investment mix may be just in the right place. If it’s not disturbing, then we may want to consider a more aggressive approach. Periodic market corrections are unavoidable in our search for higher investment returns. How we react to them will determine our long term investment success. “Gut” reactions don’t make for good investment decisions. Patience is rewarded.

If you would like to discuss things in more detail please give me a call (978-256-1323) or email me.

Happy Summer!

Jim McCusker