To Investors:

DAY OF RECKONING, FEAR, PANIC, COOL HEADS PREVAIL, THIS TOO WILL PASS. These are the headlines and no one really knows where this market is going. The investment outlook is different from all points of view.  An economist with BMO (Bank of Montreal) states that he believes that the TSX will be back up to 14,500 in twelve months and this is a 31% increase. It would be really nice to be in on that . Another economist states that we are in for a recession over the next twelve months. The Federal Banks across the world have this morning cut their lending rates in the hopes that this will loosen up money and ease the panic on the markets. The tight credit is what is creating the worldwide sell off and the power people are looking at this as a buying opportunity and are awaiting the “bottom” before buying back in heavily. When that happens the markets will go up substantially. Most pundits say that if you are in the markets and do not need the funds within the next year then stay the course and you will be rewarded. I tend to agree with these pundits and history has shown this over and over again.

This is just a note to say that I think we should “stay the course”, not panic and realize that we are in an opportune time to catch the “upswing” when it arrives.

Jack Wallace  CFP CLU

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