In Tune with the Stock Market - January 2007

It has been said that "the trend is your friend!" If that is the case, with stocks having been going down since the high in October, the trend is not a friend to stocks! It has been our position for this past year that a defensive strategy for individuals who are near retirement or are retired makes a great deal of sense. This has been a good time to be in liquid fixed investments, especially municipal bonds. We have seen a flight to high quality and more liquidity as the market has continued down. Times change and the market will change too. We are waiting to see what the Federal Reserve does on January 29th and 30th.