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2007 has been a wonderful year, but it hasn't been
without its share of pitfalls. This newsletter will
discuss the roller coaster ride that has been the stock
market and our holiday updates. Have a healthy,
happy, and prosperous 2008!
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Year in Review
The Markets
While the beginning of 2007 appeared to be a
continuance of the smooth sailing the markets have
seen since mid 2002, that illusion was quickly
removed when the markets dropped rapidly at the end
of February.
From mid March through early July, the markets
rebounded in a confident manner by marching up to
new all-time highs in the S&P 500 and Dow.
Much like a roller coaster that climbs that first
treacherous hill, the markets pulled back quickly from
their peak in mid July through mid August. This
decent
rapidly erased 2007's gains.
While many started to fear the worst, the markets
began
to climb once again. In early October, we reached
new all-time highs in the S&P and Dow. Not to be
outdone, the ascent in prices was followed by an even
larger drop in value than one we saw in July and
August.
Since mid November, the markets have oscillated
between strong performances to weak. With light
trading and a small "Santa Claus" rally, it appears as
though we will see respectable returns for 2007.
Barring an unforeseen decline, the S&P will likely end
the year up almost 6%, the Dow up almost 9%, and
the NASDAQ up almost 13%.
While the saying is "alls well that ends well", this year
has reminded us of the importance of creating a solid
investment plan. With five strong years of market
performance, 2007 showed us that the markets can
fall as quickly as they rise. In 2008, we will continue to
monitor and update client portfolios to ensure they are
in line with client objects and with their tolerance for
risk.
If you are not currently a client, you can send us a copy
of your portfolio for us to review. We would be happy
to
sit down and discuss the opportunities available to
you in today's market environment. Our firm operates
by the motto "slow and steady wins the race". While
we cannot guarantee performance, we do know that
while many of our clients enjoy the amusement park,
they prefer that their investments stay off the roller
coasters.
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The Family
Heidi and I had the pleasure of traveling to New York
City earlier this month. New York is Heidi's favorite
city, and even I have to admit, it is beautiful during the
holidays. One "hidden" treasure we recommend
during any season is the New York Public Library on
5th Avenue and 42nd Street. Even if you don't like to
read, you'll find the library to be an incredible work of
art.
Fenway was lucky enough to have a sleep over with
his best buds, Edgar and Sadie during the second
weekend of December. We love having his friends
over because it is so cute to watch them interact and
compete for their toys when we play fetch.
Unfortunately, the pups found a mud hole as big as a
small pond in the park. They decided it was the
perfect place to cool off after an afternoon of running.
Needless to say, we all paid the price when we got
home. Giving three very muddy dogs a bath is quite a
task. Especially when you do it outside on a cold rainy
day.
Later in the month, Heidi and I went to the Kennedy
Center for a holiday
show. The symphony's
performance was very entertaining. They did a
wonderful job of involving the audience and keeping
the children amused. At one point Santa was asking
the kids in the audience what they wanted for
Christmas. One asked for anything expensive. When
pressed for something specific, the young boy said
that he wanted an I-Phone. Ugh. I'm so glad we don't
have kids!
The Kennedy Center is also where Heidi and I got
engaged. Every visit we go up to the top floor's outlook
and reflect. I take this as an opportunity to remind
Heidi that I can and have been romantic.
Unfortunately, this plan seems to backfire and it
breaks the romance of the moment. Oh well, she new
what she was getting into!
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and coworkers by using the link on the bottom left.
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screen. As always, thank you for your referrals!
Happy New Year!
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