Commentary

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.

With fear, uncertainty and panic prevailing, good assets are being put on sale with the bad. We believe this is a good time to be investing.

… Hilton, that is, or so it seems.

A roller coaster ride ends where it begins, in relative calm and at full stop, in sharp contrast to the wild ride in between.