Market Update 1st Quarter 2010
February 1, 2010
***This commentary is specific to those clients with accounts on our LifeGuide fiduciary platform.***
As you are aware, we sold out of your equity (stock based) positions in September of 2009, after benefiting from a large increase in the overall stock market.
We felt, and still do, that the huge rally in the overall market reached a point where further upside potential did not warrant the downside risk.
We have been anticipating a fairly large pullback in the overall stock market. There are many negative economic concerns that we believe make the current stock price levels unsustainable.
It is easy to get antsy when there is little or no movement in the accounts for an extended period of time. We understand this but believe that it is better to remain cautious with so much economic uncertainty in the market place.
It appears that the pullback that we have been expecting may be in the process of taking place. Our plan is to repurchase the equity positions in your account after the pullback occurs. The timing of this is not date specific but rather event driven.
The opinions and forecasts expressed are those of Rick Alter, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.
The S&P 500 Stock index is a widely recognized, unmanaged index of common stocks. Past performance is no guarantee of future results. Average annual returns assume the reinvestment of all distributions and/or dividends. Indices are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.
We will post another commentary when the decision to repurchase is made. [ Back to Article List ]
|
