10 Aug 2007 Perspective

Before getting involved with the numbers, the whys, and the wherefores of the latest global market volatility, let me reassure you, our clients, that your portfolios are conservatively allocated and diversified with higher than usual levels of cash. We do not try to time the markets, but during times of high volatility and uncertainty we err of the side of caution, particularly in the more risk-averse models. This global sell-off is all about the question of whether the growth outside of the US sustains itself in the face of a US slowdown or recession. Because it is unprecedented, investors are re-assessing their earlier rosy assumptions.