Stocks remain expensive, particularly in light of what is happening in Asia.
We are looking for selective buying opportunities, and assessing the impact of the problems in Asia on the companies we hold, and would like to hold. Long term, we are optimistic about the U.S. economy, but believe the market is vulnerable to further declines in the short term. We do not believe in market timing, and are comfortable with the companies we currently hold, and the prices we paid to own them. We believe that their long-term prospects relative to the market are positive. We have maintained a cautionary warning to clients and advisors in our recent Investment Commentaries that the valuations in our stock market discounted pretty much everything good that could happen, and did not leave a great deal of room for something to go wrong.