Hi Everyone,

Unfortunately, this will be the 3rd time I’ve written to you on the topic of this protracted market downturn. And quite honestly, I’m not sure I have anything new to add to the discussion.

But at the risk of being redundant let me restate some items of note. Your portfolios are well diversified and constructed to weather financial storms, even the “perfect storm” we find ourselves in now.

This is not to say that we are immune to the turbulence. When the markets are in panic mode short term losses are unavoidable. However, given our attention to diversification, our losses have been a fraction of the market’s and our recovery should come that much sooner.

History tells us that being steadfast during times like these is almost assuredly a recipe for success. Some recent historical perspective will help illustrate this point. In January of 2000, at the height of the internet craze the Dow Jones Index stood at approximately 11,700. A year and 3 quarters later, in October 2002, it had dropped to a level of around 7,300. A decline of almost 38%.

In the ensuing 5 years through October 2007 it rose close to 6,900 points, a return of almost 100%. Will the current market downturn follow the same pattern? I don’t know. What I do know, is that although the story line changes from market cycle to market cycle, the ending remains the same. Patience is rewarded.

I know it’s difficult to sit tight in the face of all the negative news. So if you need some help please call me and we can discuss your situation in more detail.

Your Partner in Hoping for a Quick Recovery,

Jim