November 2009 Update
November 12, 2009
Dear Clients,
RE: November 2009 Update
Enclosed is your reviewed position performance summary for the period of December 31st, 2008 to September 30th, 2009. For your reference here are the performance numbers for various stock indexes for the same time period:
| Index | 3rd Quarter 2009 | Year to Date |
| Dow Jones Industrial Total Return | 21.29% | 18.92% |
| Barclays Aggregate Bond | 3.74% | 5.72% |
| NASDAQ Composite | 15.90% | 35.39% |
| S&P 500 | 15.60% | 19.25% |
| Morgan Stanley EAFE | 18.79% | 25.49% |
Looking back, it does seem that March did indeed mark the low point of this thing we have all just gone through - or going through? I believe the media has coined this “The Great Recession.” No matter if you believe the worst is over or not, most people would agree that we are indeed in an age of the “New Normal."
For me, the New Normal is characterized by an era of de-leveraging, massive government debt, high government involvement in corporate business, high unemployment, and large amounts of real estate foreclosures. Some economist think the foreclosure market will stabilize in 2011 and unemployment will stay high through 2010. Add to this the aging population of America and it’s easy to be pessimistic about almost everything.
But in light of this, as you can see, the markets have been moving higher.
While it’s difficult to see what lies ahead, we have started to incorporate a new tool in our investment arsenal to deal with investing in the New Normal. It’s called “Technical Analysis.”
Without going into a lot of detail, technical analysis adds flexibility to your investment portfolio. It is based on the study of historical price movements and past trend patterns. There is no assurance that these movements or trends can or will be duplicated in the near future. *
Be sure to watch the website, your e-mail, and mailbox for meetings and classes to discuss this new tool and how we are using it.
The family is relieved that Daddy is doing better. Cameron, Jr. continues to learn the piano. Colin scares his parents by not being afraid of trying anything once, and Katie is the second mother to her big brothers.
As always, please call anytime if you have any questions or concerns. My home number is 301-865-1988 and my cell phone number is 240-446-2921. Have a good holiday season and may God bless you and your family!
Sincerely,
C. Cameron Bell, MAS, CFP
Executive Director
[1]Indexes are unmanaged and an investor cannot directly invest into an index. Past performance is no assurance of future results. Presented in percentage change. *Conclusions expressed in the TA section are personal opinions; and may not be construed as recommendation to buy or sell anything.
This information was obtained in Morningstar Workstation Office Addition, on October 25, 2009.
[1]The Barclays Aggregate Bond Index is comprised of a variety of taxable bonds, and is used as a measure, or benchmark, of the US bond market.
The information contained in this report reflects activity for periods shown and is based on sources believed to be accurate, however it cannot be guaranteed. It is neither an official statement of your account with FSC Securities Corporation, nor has the data been audited or verified by FSC Securities Corporation, correspondent, individual sponsors or money managers as to its accuracy. Please refer to the confirmation notices and client statements that you receive directly from them. The figures may be net of applicable fees, charges, and expenses. They may include dividends, distributions, additional contributions or withdrawals. Prices, yields and total returns will vary. Some securities listed may not be liquid. Prices shown may reflect an approximate or estimated value, and not necessarily reflect actual selling or market price. Tax deferred accounts/products (such as variable annuities) have various rules and restrictions that apply regarding accessibility of funds, tax consequences and other factors. The views expressed are not necessarily the opinion of FSC Securities Corporation, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. No strategy can assure a profit nor protect against loss. Indexes cannot be invested in directly, are unmanaged and do not incur management fees, costs or expenses.
