Friday, December 28, 2012
I hope that you had a Blessed Christmas and you will have a safe and joyful New Year. I would normally be coming to you in video but I have a very bad cold and I know you wouldn’t understand me so I’m falling back on just writing to you. I’m writing to you on Friday the 28th of December.
It appears that we had no Santa Claus rally into year-end and unless the session of Congress on Sunday produces a Christmas Miracle we will go over the Cliff on Monday. There has been a great deal written about what could happen if we go over the cliff. I want to remind all of you about the fall of 2008 when everybody was sure that the Congress would pass legislations that would save the economy of the US and the world and when they didn’t those same people asked how could they fail to pass a bill to save the world?
I’m not saying the events, over the next few days is a bad as the fall of 2008 but it will be bad. I would like to remind all of the current clients that we came through the correction that followed in 2008 stronger than ever. The one thing you or I can’t control is the emotion in the markets. I have been reviewing all of our positions and at least for now I do not see any case where the dividends are in jeopardy of being cut or eliminated. In fact we have a substantial cash position and if we do get a significant sell off I will deploy cash at what I hope will be attractive current yields.
I realize that it will be un-nerving when the markets sell off but we will meet our income payments and add to our income. Be assured that I’m looking at your investments and possible opportunities to deploy your cash.
Happy New Year,