As we dig out from the amazing snows here in Maryland, we wanted to provide you with a brief summary of the current market conditions. For those of you out of state and in warmer climates, the scene here over the past week has been surreal.

Looking at today’s market action, there is really no place to hide from the volatility. Domestic and foreign stocks, commodities including gold, are all in weak modes and we expect that to potentially continue as we progress through this correction phase.

However, it appears that the stock market is not going to give us a neat, straight drop to new bottoming levels. It looks more like a grinding ebb and flow to the downside. Lowe fs continues to have a “bullish” view of the markets over the next 24 months. It is our view that the current volatility and downward pressure may be a short term event as we move toward a more sustainable recovery.

China’s fiscal and monetary actions to stem speculation and inflation are prudent. They are reassuring to us that the Chinese government understands the risk of liquidity and asset bubbles and is prepared to sacrifice cheap near term growth for more desirable growth longer term.

We continue to monitor the market volatility regularly and will make shifts in our actively managed accounts (not all accounts are actively managed) as appropriate.

Have a great weekend and for those of you in Northeast region, enjoy the sunshine!

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice. Not all portfolios are actively managed. If you have a question about how your account is being managed please contact us. Generally accounts less than $150,000 are not actively managed. An Index is a portfolio of specific securities (common examples are S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance is not indicative of future results.

Important Disclosures

• Not all portfolios are actively managed. If you have a question about how your account is being managed please contact us.
• No diversification can completely protect against market risk or other risk factors with investing. A diversified portfolio could still lose money.
• An Index is a portfolio of specific securities (common examples are S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance is not indicative of future results.

Foreign investing carries additional risk such as currency risk, political risk and different accounting standards.

*Lowe fs is a registered investment advisor.