The Road Ahead

Are we looking at a replay of the Great Depression’s banking crises?

Whether the Feds come to the aid of AIG, this is the kind of environment we see around market bottoms. Panicked investors hear breathless reports of a financial meltdown and wonder if their money is safe. The short answer is that nothing is absolutely safe. The longer answer is that the health of any portfolio is tied to the health of the economy.

And while the economy is slowing, it’s not collapsing. We’ve had some bad economic reports the past several weeks, but the market’s volatility is more associated with the excessive leverage that the investment banks took on during the good times. But away from New York, business is getting done.

So while we’re concerned, we’re not worried. Markets always go down before they go up again. And in the long run, this fluctuation will look like fly-specks on a mirror.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-03T21:08:28+00:00September 17th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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