QUARTERLY MARKET & PORTFOLIO COMMENTARY
4th Quarter 2008

Friday, October 6, 2008
By William H. Young

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Sea (See) Change

Sea Change as defined by the American Heritage Dictionary as a marked transformation. That is an explanation of the current economic and market conditions we now face. The banking system that we have been familiar with is transforming to adapt to global and national economic trends, redefining how individuals and business will handle normal transactions and obtain credit. Politically, the country will select a new, non-incumbent president during this quarter. Institutional Fund managers are faced with asset class and allocation decisions based on portfolio performance and changing trends. The definition of Sea Change is definitely applicable when one looks at today’s conditions.

Sea Change will mean that we will See Change. During this market turmoil, changes in the rules and regulations in the financial industry will require investors to pay close attention to the new structure of financial institutions and concentrate on the new opportunities that will arise during this time of change. Additionally, we could possibly see other business combinations and new business strategies as this financial Sea Change takes hold.

In my over thirty year career of investing, I have experienced many Sea Change events, e.g. the Hunt family attempt at cornering the silver market, the oil embargo, October 19,1987, September 11, all which had major effects on the market and the economy. In every instance, when conditions settled and the change begin to take effect, investors that had been disciplined were rewarded. Experience tells me that we will See Change and the markets will recover.

Buford Dickson Harper & Sparrow continues to have a disciplined long-term perspective of the market. Stock selection, earnings acceleration and multiple expansions will remain key to market performance for the remainder of the year. Our firm’s long-term investment discipline, strategic stock selection and solid investment philosophy should continue to position clients to weather these turbulent times and be in position when positive market trends return.

William H. Young
President