StreetsOfGold
13th September 2012, 02:50 PM
I thought I would post this email from a financial institute which I need to keep anonymous of the source.
This was forwarded to me by a friend and he was not suppose to send it to me so for his sake, I need to keep it this way.
This friend has worked for many years in the financial industry in providing people with investment strategies.
Subject:
To: All XXXXXX Financial Partners registered agents
Re: Market update
As the debate rages over what the world’s central bankers will do to spur economic growth and solve the European debt crisis, markets – particularly equities – continue to rise in apparent anticipation of some form of major stimulus heading our way courtesy the US Fed, the ECB, and perhaps even Santa Claus.
In addition to the debt problems in Europe, there are continued signs that economic growth is slowing anew across the globe. In fact we believe that right here in the United States we are in the early stages of a brand new recession (see attached Portfolio Rehabilitation update).
In our opinion, there is a growing divergence between the direction of our economy and the pricing of risk assets, a divergence which we believe is close to a resolution. Our opinion, based upon our analysis of historical relationships and our own recollection of past events, is that the resolution of these divergent paths is likely to involve a significant, and perhaps abrupt, downward adjustment to the price of risk assets.
We view the current market environment as an especially risky time for investors and believe it is prudent in general to reduce client exposure to risk where possible and appropriate. Of course it is entirely possible that the market’s apparent confidence in world bankers will prove correct, and our concern will be unwarranted. However, our analysis of economic conditions and perspective of history finds no basis to support such a conclusion.
As always, many thanks to all of you for your hard work and efforts. It is times like these that your clients need you most.
Best regards,
XXX.
XXXXX CFA
President
This was forwarded to me by a friend and he was not suppose to send it to me so for his sake, I need to keep it this way.
This friend has worked for many years in the financial industry in providing people with investment strategies.
Subject:
To: All XXXXXX Financial Partners registered agents
Re: Market update
As the debate rages over what the world’s central bankers will do to spur economic growth and solve the European debt crisis, markets – particularly equities – continue to rise in apparent anticipation of some form of major stimulus heading our way courtesy the US Fed, the ECB, and perhaps even Santa Claus.
In addition to the debt problems in Europe, there are continued signs that economic growth is slowing anew across the globe. In fact we believe that right here in the United States we are in the early stages of a brand new recession (see attached Portfolio Rehabilitation update).
In our opinion, there is a growing divergence between the direction of our economy and the pricing of risk assets, a divergence which we believe is close to a resolution. Our opinion, based upon our analysis of historical relationships and our own recollection of past events, is that the resolution of these divergent paths is likely to involve a significant, and perhaps abrupt, downward adjustment to the price of risk assets.
We view the current market environment as an especially risky time for investors and believe it is prudent in general to reduce client exposure to risk where possible and appropriate. Of course it is entirely possible that the market’s apparent confidence in world bankers will prove correct, and our concern will be unwarranted. However, our analysis of economic conditions and perspective of history finds no basis to support such a conclusion.
As always, many thanks to all of you for your hard work and efforts. It is times like these that your clients need you most.
Best regards,
XXX.
XXXXX CFA
President