Posted by Keith at February 4th, 2009

With the end of 2008 upon us, I reflect with astonishment on the events that unfolded. In regards to the financial markets, the monumental events are too numerous to list. The enormity of the violent swings in the markets that occurred on a weekly basis were unprecedented. As the year progressed, we searched historical data for patterns. We began with the current market’s correlation with the late 1990’s, then the 80’s, soon we were in the 1970’s. As we reached December last year, the patterns of our charts were actually resembling technical patterns of the late 1800’s to early 1900’s. Then we began to see firsts: the first time the market did this, the first time the market did that, and we recognized its significance.

In Abraham Lincoln’s second annual address to Congress December 1, 1862, he stated, “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew, and act anew. We must disenthrall ourselves, and then we shall save our country.”

Recognizing the significance of this year’s market volatility, we made numerous adjustments. We gleaned a vast amount of knowledge from the events and we confirmed our belief in our Seasonal investing strategy and our Bond Management Program. I believe 2009 will bring a challenging environment for investing but will also provide great opportunities. This year will require a definitive plan to be successful and, as a member of the team at G.L. Smith and Associates, I know we have a plan in place to take advantage of this year. We are thinking anew, acting anew, and we are embracing 2009 with great expectations.