Are We Having Fun Yet?

The best three months for stocks in over ten years. And, this was accomplished in the face of rising unemployment, weak retail sales, and a miserable residential housing market.

So, what does this mean and what does it portend for the future? It apparently means that A) the drop in the stock market was overdone B) There is a lot of money around with no other place to go and C) many investors are hopeful for the future and fear “missing the boat.”

We are thankful that we were positioned from March forward to participate in this rally which now extends to seven consecutive months. Can this extraordinary run continue? We suspect that the best gains are behind us and look to our strategy of call writing with emphasis on dividends to provide further, less dramatic returns than we have enjoyed to date.

We will endeavor to provide downside protection since the market is again at a level which, we think, carries significant risk. Our economy is now largely dependent on government activities as the underemployed American consumer will need more time to recover.

We have been in business for 25 years now and currently manage about $52 million. We started this year at $40 million. This increase is mostly current year income and gains. Some is money from new clients and some is net additions by existing accounts.

A reminder that we have a website, www.Cantlonfinancial.com that is worth a visit or revisit. For those inclined, we also have www.Cantlonscollectibles.com which contains many nice photos of our facility in the “property” section.

Fall is a great time to visit and take in the autumn colors. Call Tom or me to set up an appointment. We’ll be happy to see you.

Very truly yours,

Michael F. Cantlon