Commentary for October 8, 2008

Good Morning!

Stocks were pounded yesterday down to multi-year lows as a lack of coordinated action by central banks around the world sent investors for cover. That said, this morning, apparently in response to this mounting economic crisis our Federal Reserve along with other central banks cut interest rates across the board by 0.50% hoping to steepen the yield curve and re-liquify the banking system. In our opinion, at some point in time over the next quarter or two the economy will bottom and so will the stock market. We have moved up the food chain, eliminating some investments that we believe will not rebound from this global economic slowdown and either moving into other investments or raising cash, where appropriate.

We believe that, over time, America and our stock market will recover from this financial crisis. We believe that we will look back five years from now and wonder why we sold stocks during October of 2007. If you don’t concur that get out and stay out.

Dennis Fagan
Chris Fagan

This entry was posted on Wednesday, October 8th, 2008 at 8:00 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.