“It was the best of times and the worst times”

11-24-08
Victor Hugo in his 1862 novel begins with these famous words. The setting of Les Miserables is a post-war Paris having just concluded the rule of Napoleon. Facing a massive rebuilding of their city and society, the author tells the tale of a man, his family and his battle with the past. While certainly not an exact comparison, there are some similarities to our situation today. It is with the passion and commitment of Jean Valjean that we write this letter.

We are on the brink of a new paradigm: politically, socially and economically. Everyone is facing a rebuilding of sorts. All aspects of economic life, as we have known it over the last decade are adjusting and correcting. The fact that we are experiencing a worst-case scenario makes this period "epic" for most. There is no hypothetical that would have accounted for the massive confluence of negatives. Even for those of us who were bearish on housing and as a result cautiously in stocks, the Lehman/Bear Stearns 40 to 1 leverage effect was a complete blindside punch that no one could see coming. This is reverberating through all aspects of the world economy.

That said, we are resolutely fighting the battle. When we are past this storm, we will honestly be able to say we can make it through anything. We are not repeating history, we are making history. This period will be studied and read about by generations to come.

Looking at this snapshot in time, know that we are diligently executing a plan that we feel confident is timely and strategic.

• Continued effort to “trade” to stem losses, as best we can.
• Identify fixed income opportunities that offer quality and yield.
• Implement a plan to take advantage of the foreclosure market schizophrenia.

In implementing these tactics, Criterion Wealth Management continues to pursue excellence. We are often reminded of a verse from the Bible that states: "To you O Lord, belongs steadfast love. For you will render to a man according to his work." This is not a guarantee of riches, just peace of mind. We have much to be thankful for family...health…work.

As we work through this, we again offer you our deep appreciation for your trust and confidence in us. We will come out on top and look to the future for great things.

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