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Good morning
Stocks are looking to open sharply lower as the Labor Department reported that Non-Farm Payrolls for the month of February fell by 63,000 far below the consensus estimate which was for a flat payroll report. As we noted in our letter to clients during early January, we projected a choppy/downward moving market during the first half of 2008 with the stock market rebounding during the second half. With this in mind, we will continue to dollar cost average into stocks on weakness and recommend that investors stretch out their time frames and begin to look for values that may be profitable over the next one to two years rather than one to two months. Build positions and look to upgrade your portfolio.
Regarding fixed income, be VERY careful out there. The credit markets have seized up and that is being reflected in municipals, mortgage bonds and low-grade corporate bonds. On the flip side, we continue to find value in Inflation Protected Securities.
Dennis Fagan
Chris Fagan