All Good Things Must End

After an amazing ten consecutive months of positive investment results, we came to June 2007. Now we have one consecutive month of negative results.

The investment climate is, as usual, as unpredictable as the weather. A weak housing environment and higher interest rates weigh on the market as consumer spending (70% of our economy) begins to sputter. Consumer confidence, high oil prices and inflation are not helping. And yet, June notwithstanding, equity prices have been generally robust. The increased volatility should improve call option premiums and therefore our income.

I’m hoping the market knows something we do not, but we will stick with our more conservative stance since the economic recovery is “long in the tooth” and the risk/reward ratio does not seem favorable.

We recently placed a non-investment client in an immediate annuity which will pay 7.4% on her principal amount for as long as she lives. This is one way to assure a monthly income for life although there is no inflation protection. If you have an interest in discussing such an investment product, please call.

Very truly yours,

Michael F. Cantlon