Signal Point™ Asset Management Advisors

Weekly Risk Report 09/15/2008

Published Sep 15, 2008 by Thomas M. Veale

Should I write this week's column based upon Friday's closing data as usual, or should I write it as though I watched today's market open and the "news" on CNBC? Should I write it taking into account the extreme efforts on everyone's part to get SignalPoint up and running and how nicely it's been doing compared to its stated goals? Or, should I look at the glass half full and say that we've suffered paper losses for the quarter and year to date?

Well, the i-Wave is unmoved by Lehman's and Merrill's problems. It's also unmoved by the trauma being realized by the Gulf Coast's recent storms. It has, however, continued to log an unusual number of "low risk" weeks during 2008. Low risk obviously doesn't mean "no risk" but when we look back over the last few years, we see that we also were experiencing above average risk for a long time, too.

While not much "fun" it hasn't been a disaster unless one's entire pension was invested in Lehman Bros stock or possibly Freddie Mac's. Looking over our year to date and quarterly returns for 2008, we've managed to cushion the bumps associated with market by keeping losses much lower than those of the S&P 500. Time and again, the value of diversification comes into play. Time and again, having a plan for what to do when the market winds shift, shows its value. Time and again having a "rainy day fund" gives us the chance to participate when opportunities present themselves.

Back to Blog Post List