Stock Market Turbulence

I know that today's continued volatility is unsettling, but please recognize no matter how much the media is scaring you we are not hitting new lows.  The lowest point for the S&P 500 and DJIA was reached on October 10th and ever since then the DJIA has traded between 7,773 and 9,310.  I would anticipate that we will continue to be bounced around until after the elections.  It should also be noted that trading volume was significantly higher on the 10th, another sign of the market capitulation that I discussed in my last email.  Below I have provided a few resources that will hopefully help you recognize that we are much closer to the bottom of this market, leaving tremendous opportunity for a recovery in the coming months.

• Warren Buffett the most successful investor of our time, had his thoughts on this economy and market published in last week's New York Times.  The piece was titled, "Buy American. I Am" (http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=2&ei=5070&emc=eta1&oref=slogin&oref=slogin)
  
• Many of you probably noticed that one of the bright spots on your 3rd Quarter Investment Capital Report was that the Hussman Strategic Growth Fund was up 4.5% as of September 30, 2008.  The manager of that fund, John P. Hussman, Ph.D. wrote a very positive piece this week that is worth reading titled "Why Warren Buffett is Right (and Why Nobody Cares)"  (http://www.hussmanfunds.com/wmc/wmc081020.htm)
  
• As many of you know I started broadcasting "The Money Guy" show over 3 years ago and it has been very successful with thousands of weekly listeners, industry awards, and a featured position on Apple's iTunes.  I have provided a link to this week's show titled "Time to Buy? Buffett vs. Cramer". This provides additional insight on my thoughts on where we stand in this market and economy. http://www.money-guy.com/time-to-buy-buffett-vs-cramer
  
• I also wanted to let you know that I was notified last week that I would be included on Medical Economics
  2008 "150 Best Financial Advisers for Doctors" list. 
  

I know in these difficult times to stay the course requires a strong stomach. We encourage you to stick with your long term investment plans at this time. Please contact me if you need to talk about your portfolio or what is going on in the economy.  The markets have experienced other crises in the past (the Savings & Loan debacle of the 80s, the crash of '87, the currency crisis of the 90s, the technology boom/bust cycle of the late 90s, and now the mortgage/credit meltdown?). In each of these periods, the problems have eventually been resolved and markets return to more positive and less volatile times.

 
 

Thank you for letting me be a part of your financial decisions, and I recognize the weight of my responsibilities.  As always I am here to discuss any of your concerns and please feel free to forward these updates to your friends and family that are also looking for direction in these uncertain times.

  
 

J. Brian Preston, CPA, CFP®, PFS
NAPFA - Registered Financial Advisor
Preston & Cleveland Wealth Management, LLC
1611 South Zack Hinton Parkway
McDonough, GA 30253
www.Preston-Cleveland.com