MORE HEADLINES
Economic Update
Economic news showed both negative and positive signs, sustaining trepidation among investors.
Domestic Equity
U.S. equities reversed from the year’s positive trend in October.
International Equity
Emerging market equities experienced a volatile October.
Fixed Income
Both high yield bonds and bank loans have been the big story of 2009.
Real Estate Securities
With the exception of the health care sector, all major property sectors posted negative returns.
Hedge Funds
Hedge funds experienced their first negative month since February.
LESSONS FROM 2008
One year ago, we were in the midst of one of the most frightening economic environments in generations. The stock market was falling several percent daily, often in the last 15 minutes of trading. The credit markets were frozen and major financial institutions were selling to other firms, declaring bankruptcy, or being rescued by the government. The government was debating massive stimulus programs and unprecedented interventions into the private markets. Panic and fear ruled, and many were asking if we were headed towards another Great Depression. Fortunately we did not enter a depression, but we did experience a severe recession, with the impact to be felt for years to come.
