Commentary for August 11, 2008

Good Morning!

Tumbling oil prices help stocks to their largest weekly gains since April. Oil prices fell to their lowest levels since May 1st and investors used this decline to purchase stocks despite weak earnings reports from AIG as well as government sponsored FannieMae and FreddieMac. As we have over the past couple/three months, despite cautious over the short term, we remain optimistic that over the next few years stocks are the most attractive asset class and despite the lackluster stock market and weak economic data thus far in 2008 remain steadfast in that outlook. We therefore believe investors “would be wise to begin to nibble” at stocks as we believe that we are less than ten percent from the bottom. If you are looking out over the next two to five years, stocks are relatively attractively valued. However, if you are looking out over the next two to five months, there may be a better time. As we often say to our clients, there are portfolios built for good times, portfolios built for bad times, but we build them to last a lifetime!

Dennis Fagan
Chris Fagan

This entry was posted on Monday, August 11th, 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.