Dear Friends and Clients.....

The markets have been very volatile lately. No, actually they have been down right ugly. Fear and panic is ruling the day. It is understandable and even anticipated that you may be worried or anxious during these times. The financial markets have been beaten down by continuing bad news and the S&P 500 is down approximately 20% for the year. Fortunately, I feel many of my accounts have done substantially better than this, but this is of little consolation at the moment.

There’s no denying that we have entered uncharted waters. Our markets have entered a period similar to the French Revolution, where virtually everyone is on trial and the accused are having their heads cut off. The speed from which information becomes public and where complete companies are gone is astonishing.

Our financial system is under pressure. There is a lot of stress and it is difficult to understand how it could be this severe. Outside of the financial sector things are not nearly as bad. Not that our economy is rosy, but the non-financial sector is growing slightly. The worry is that the financial sector could spill over to the rest of the economy.

During this difficult time, I am undertaking research to help you formulate a strategy going forward. It is unwise to make substantial adjustments during a time of market panic. But it is wise to review each and every holding to determine if it is a justified holding. Right now my plan is to let the dust settle a little bit before recommending adjustments.

The quarter end is very near. Hopefully we will have found some common sense by then. I will send out my recommendations to you with your quarter end reports. It is very easy to be protective of past decisions and just recommend holding through this difficult period, but I am truly attempting to review my outlook from a neutral point of view. The economic reports I subscribe to, just projected last week that September and October could be difficult months, but they anticipate an upturn by year end. Will this analysis still be correct? Maybe not, but it tells me not all is lost.

I want to let you know that I value your trust. I am here for you to review your strategy as you might need me. Obviously, I can’t control the markets and thus can’t guarantee anything, except that I am investing right alongside of you. We have seen similar circumstances before 911 (9-11-2001) and have come through the tough times.

If you would like to visit with me prior to my recommendations, please give me a call.

Sincerely,

Ron Dickinson