In light of the recent volatility in the markets, and specifically the weekend acquisition of Bears Stearns by J.P. Morgan Chase, we wanted to take a moment to communicate our current view of the markets and our current thoughts on the investment environment.
As we have stated in the past, Reliance continues to maintain a long-term focus, adhering to a disciplined investment process focusing on economic and market fundamentals rather than the short-term movements of an emotionally charged market. It is our belief that the current market is emotionally super-charged and now is the time to truly adhere to investment strategies that were developed when emotions were less heated and when fear, uncertainty and doubt were less of a day-to-day occurrence in the marketplace. Our ultimate objective continues to be the production of solid long-term performance results. The current market, while tumultuous, has done nothing to shake our conviction.
With that said, we do agree with the commentary in today’s Reliance Economics Today that a recession does seem to be a forgone conclusion and that inflation is and will continue to be worrisome for at least the first half of 2008. Much of this is being driven by the lack of liquidity in the markets and the basic pessimism that seems to be driving institutional investors. We also believe that there is more turbulence in our future and that now is a critical time for investors. We spend the time and the effort on good investment policy, solid asset allocation strategy and strong tactical execution of both to ensure that our clients weather these inevitable storms in the market and are well positioned when the storm passes.
In closing, this is not the first time we have seen this type of market turbulence and it will not be the last. If you have questions please feel free to contact me and the Investment Management Group.
Please feel free to call if you have any questions or concerns.
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