Morning Commentary — July 27, 2011
Wednesday, July 27th, 2011
Politicians have the uncanny ability to do absolutely the wrong thing at the wrong time. See the initial voting down of the Troubled Asset Relief Program (TARP) a couple of years ago. That is why the deadline for raising the debt-ceiling may pass without an initial solution. That said, should the markets drop, politicians also have the uncanny ability to do the right thing when their reelection is in jeopardy. This is why we would view a drop in the stock markets as a buying opportunity. One caveat, there appears to be more idealogues at the fringes on both sides of the aisles. These are the wildcards that, despite a drop in the markets, may nonetheless hold their ground.
We have several plans of action that range from holding conservative assets that we believe will not be impacted by any debt default to holding cash. What we choose to do for our clients depends upon their objectives, time frame and tolerance to risk.
Any specific stocks named in this presentation may not be representative
of current or future investments in the portfolio to which they belong.
You should not assume that investments in the securities identified
were or will be profitable. We will furnish, upon your request,
a list of all securities purchased, sold, or held in the portfolio
during the twelve months preceding the date of this presentation.
Please note that all data is for general information purposes only and
not meant as specific recommendations. The opinions of the authors are not a
recommendation to buy or sell the stock, bond market or any security
contained therein. Securities contain risks and fluctuations in
principal will occur. Research any investment thoroughly prior to
committing money or consult with your financial advisor. Please note that
Fagan Associates, Inc or related persons buy or sell for itself securities
that it also recommends to clients. Consult with your financial advisor
prior to making any changes to your portfolio.
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