Commentary

For all the talk of “green shoots,” it is easy to lose sight of the forest.

Many investors are exhibiting the classic five stages of grief in dealing with their portfolios.

Things seem to be getting “less worse” than they used to be. But when is “less worse” no longer good enough?

This is not a typical economic downturn and it is highly unlikely that the outcome will follow any conventional playbook.

Expectations have, once again, gotten ahead of reality. We proceed with cash and caution.

We see significantly more economic challenges to come in the coming months and are maintaining a substantial allocation to cash in client portfolios.

We expect extraordinary challenges for the economy and the investment markets to continue; these conditions may also create some extraordinary investment opportunities for those with cash and patience.

The recovery will likely be slower and more anemic than expected. We remain defensive.

If you are willing to look across the valley, the current environment offers a rare opportunity to invest in great companies.

And with a flick of his magical monetary wand, Federal Reserve Chairman Ben Bernanke restored liquidity, stability and confidence to the financial markets as they teetered on the edge of the sub-primal abyss.