Commentary for August 3, 2008

Good Morning!

Stocks continue to remain volatile on a daily basis, but rangebound week-to-week. Furthermore, at least over the past month, there has been a clear rotation from energy to the less cyclical/early cycle sectors. 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

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