Thursday, June 1, 2006

Private Client Ltr Making Lemonade attached

Dear Clients,

In keeping with my recent theme of resurrecting some of my newsletters from the past, to help you maintain the proper perspective in today's volatile environment, I have attached below a letter from April 2005 titled "Making Lemonade". In this piece I expose the silver linings to what initially appeared to be very negative business and/or economic developments. Over the years I have found that, virtually without exception, the seemingly bad economic events (that are inevitable given the economy's cyclical nature) possess the potential for better things that may never have come to pass had the "negative" events not occurred.

Of course the recent market moves pale in comparison to what you're about to read, and I'm certainly not predicting what the near term future may have in store. However I can predict with great confidence that somewhere on the horizon the next economic "crisis" looms. I simply think it's a good idea that we acknowledge as much, and know that history provides strong evidence that the initially unseen (long-term) benefits of what may appear to be a negative event, have a way of more than compensating for the initial economic and/or stock market reaction*.

Take care,

*Past performance offers no guarantee of future results.

Making Lemonade
April 2005

After 21 years of reading and listening to the financial news media report on all that is, was, and may be, I

Monday, May 1, 2006

Private Client Letter on Volatility

Dear clients,

A few weeks ago when I sent you the newsletter "A Dose of Reality", I was in no way predicting the pullback in the stock market we've seen since then. I was however promising that "pull backs" of varying degrees are inevitable, in fact essential, to the health of the market over the long-term. Today's 150+ point drop in the Dow Jones Industrial Average (which amounts to around 1.5%) is being blamed on a weak consumer sentiment survey that was just released this morning. I say, regardless of the reason, a healthy pullback (or correction) at this juncture is probably a good thing, in that the market has gone over two years without the usual 10% correction (which historically comes once every 12 months).

With this in mind, please read the two following paragraphs taken from my January newsletter "9,000 or 12,000". The basic theme is that what we want to happen is whatever needs to happen to keep the markets and the economy healthy for the long-term investor.

Take care,

Taken from "9,000 or 12,000", January 2006
"You see, when the economy slows and businesses suffer, stock prices ultimately need to fall, accurately reflecting the true value of the underlying companies. When the economy moves ahead at a healthy (yet non-inflationary) pace, stocks should ultimately rise, reflecting an improving business environment. Trust me, you do not want the market to go up, year in and year out (besides, no matter how bad you may want it, it aint happening). May we never forget what can occur when the market fashions together a bull run that extends beyond what corporate and economic reality would suggest. We all saw the internet bubble burst in early 2000, catching many unsuspecting, tech-crazed investors off guard. Following a huge run up in stocks in the late nineties, that took the market to heights the underlying fundamentals couldn

Saturday, April 1, 2006

Wednesday, March 1, 2006

Private Client NL Economic Myths II Blessings of Destr

Dear Clients,

The following is Part 2 of my series titled "Economic Myths and Half Truths", mentioned in the mailing you received last week. We received permission from Crown Publishing much sooner than we expected. Hope you enjoy it.

Economic Myths and Half Truths

Sunday, January 1, 2006

Private Client Newsletter - 9 000 or 12 000

Nine Thousand or Twelve Thousand?
Martin L. Mazorra CFP, ChFC
January 2006

Nine thousand or twelve thousand? Where will the market end 2006? This question was recently posed to a panel of experts on an investment program aired by a popular financial television network. I