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Client
Communication Briefings
Looking back to the results of the market in its first full week of operation
since the terror attacks, one could easily conclude that the economy has been
dealt a damaging blow. I would have to agree that the picture from last week
wasn’t pretty while the domestic and world markets continued to feel the
pain, grief, and loss from the attacks. I can also say that I remain
confident that the economy will stage a defiant comeback and show those who
would see us brought to our knees the real stuff that Americans are made of.
Our financial markets work, even in times of crisis and we will eventually
see this trying time yield positive results as we have throughout history.
At the end of the trading week, the Dow was down 14% while the already ailing
NASDAQ suffered a 16% loss. As expected, the airlines suffered the most
significant losses (37% overall) and announced close to 100,000 layoffs. The
week did not prove any more positive for many of the other sectors as
confidence ebbed and uncertainty flowed on Wall Street.
Amid the haze that seeped into the markets as if from the smoldering WTC
itself, there were some rallying moments. The Fed’s
willingness to inject billions of dollars of liquidity into the banking
systems designed to enable commerce to flow. The 50bp rate reduction was
called even before the markets opened on Monday. President Bush provided an
inspiring speech to Congress on Thursday – perhaps one of the most powerful
messages ever delivered. Greenspan held audience with the Senate where he
trumpeted the market’s excellent long-term prospects. Congress infused a $40
billion rebuilding funding package. Despite their failure to produce
immediate positive influence on the markets, these actions help position the
You may have asked yourself, as certainly I’ve been asking myself, "what
can I do?". Perhaps the most important thing
that we can do is to continue being productive citizens. Our diversity and
creativity will come together as we confront and overcome this crisis. The
President has called for our support in living our lives as normally as
possible. We should travel as we planned to—air travel is probably safer now
than it ever has been before. We should proceed with making the purchases we
planned before September 11. Avoid the urge to panic sell our stock
investments. Continue to produce the goods and services that
In the wake of these events and the days ahead, please contact us if you
anticipate any significant changes in your personal situation so we can
assess and implement the appropriate response. We remain open and
appreciative of your comments and stand ready to assist you with your
concerns.
Live life fully, stay well and happy, and trust that
this too shall pass. Sincerely, Michael
P. Haubrich, CFP |