Hurricane Season

Market volatility, shifting currents in domestic and international economies have investors in a quandary. Instant press releases, unemployment numbers and congressional battles seem to have started the mighty winds of confusion and discontent swirling, causing major negative and positive swings in market values. These sudden shifts are like a financial Hurricane wreaking havoc on personal and intuitional wealth.

With all eyes focused on the short-term events of the day, many investors are forgetting the basics of investing. Identifying great companies who produce great products profitably and staying invested for the long haul is key. Hurricanes do pass and the rebuilding begins.

The eye of a Hurricane is calm and a reflection of how things will be after the storm blows by. Even in this market turbulence there are several factors that may indicate things will be better after the storm passes. Record levels of money invested in U.S. T Bills driving rates to historic lows and over $500 Billion currently are held by Venture Capital funds for deployment when the Hurricane passes.

Buford Dickson Harper & Sparrow continues to have a disciplined long-term perspective of the market. Stock selection, earnings acceleration and multiple expansions are becoming the theme of the 2010 market performance. We believe that the Hurricane’s winds will subside soon and that our investment strategy positions us to provide our clients with positive returns.

William H. Young
President & COO