 | |  | |  | |  | |  | |  | |  | |  |
1st Quarter 2002 Newsletter
After last year’s recession, bear market & fourth quarter rebound, capital markets proceeded with caution during the first quarter of 2002.
Market results were mixed, with the Dow Jones Industrial Average rising 3.80% , the S&P500 Index increasing 0.28% and the Nasdaq
Composite falling - 5.40%1 for the quarter. Smaller stocks generally out-performed larger stocks, and Value generally out-performed
Growth. 2
The year began with Enron’s collapse and the ensuing accounting scandal that spread throughout equity and fixed income markets as
investors questioned the quality and transparency of corporate earnings. Investors continue to be skeptical of promised future profits, with
markets remaining tepid in recent weeks despite mounting evidence of economic recovery. Strong rises in consumer confidence, home
sales, and manufacturing suggest that economic conditions are improving, perhaps more quickly and robustly than initially expected. 3
Despite numerous indicators of economic strength, some risk of additional retrenchment remains. Corporate profits and capital
expenditures will need to visibly firm for the economy to fully regain its footing in expansion. Further, as the rate of growth increases so too
does the risk of inflation - Greenspan’s cautious but optimistic remarks tempered market performance in March as investors worried that
interest rates might begin rising sooner rather than later.
Although uncertainty and risk remain an inherent part of investing, market sentiment has calmed considerably from the tumultuous days of
2001. Patient, steadfast investors have been rewarded, with the Dow Jones Industrial up 26% from its September 21st low, and the Nasdaq
up nearly 30% over the same period.5 As always, we recommend adhering to long-term investment objectives and a disciplined investment
strategy, and welcome the opportunity to review with you your portfolio and financial goals.
Regards,
Robert Valentine
Endnotes:
1 Wall Street Journal, April 1, 2002
2 Standard & Poor’s Index Services, Frank Russell, CRA RogersCasey
3 Wall Street Journal, April 1, 2002
4 Wall Street Journal, March 4, 2002
5 Wall Street Journal, April 1, 2002
Robert Valentine, Ca. Ins. license# 0C23496, is a Registered Investment Advisor Representative with Financial and Retirement
Management and a registered representative with Securities America, Inc., a Registered Broker Dealer. Securities offered through
Securities America, Inc., Member NASD/SIPC. Financial and Retirement Management and Securities America are not affiliated.
Market results were mixed, with the Dow Jones Industrial Average rising 3.80% , the S&P500 Index increasing 0.28% and the Nasdaq
Composite falling - 5.40%1 for the quarter. Smaller stocks generally out-performed larger stocks, and Value generally out-performed
Growth. 2
The year began with Enron’s collapse and the ensuing accounting scandal that spread throughout equity and fixed income markets as
investors questioned the quality and transparency of corporate earnings. Investors continue to be skeptical of promised future profits, with
markets remaining tepid in recent weeks despite mounting evidence of economic recovery. Strong rises in consumer confidence, home
sales, and manufacturing suggest that economic conditions are improving, perhaps more quickly and robustly than initially expected. 3
Despite numerous indicators of economic strength, some risk of additional retrenchment remains. Corporate profits and capital
expenditures will need to visibly firm for the economy to fully regain its footing in expansion. Further, as the rate of growth increases so too
does the risk of inflation - Greenspan’s cautious but optimistic remarks tempered market performance in March as investors worried that
interest rates might begin rising sooner rather than later.
Although uncertainty and risk remain an inherent part of investing, market sentiment has calmed considerably from the tumultuous days of
2001. Patient, steadfast investors have been rewarded, with the Dow Jones Industrial up 26% from its September 21st low, and the Nasdaq
up nearly 30% over the same period.5 As always, we recommend adhering to long-term investment objectives and a disciplined investment
strategy, and welcome the opportunity to review with you your portfolio and financial goals.
Regards,
Robert Valentine
Endnotes:
1 Wall Street Journal, April 1, 2002
2 Standard & Poor’s Index Services, Frank Russell, CRA RogersCasey
3 Wall Street Journal, April 1, 2002
4 Wall Street Journal, March 4, 2002
5 Wall Street Journal, April 1, 2002
Robert Valentine, Ca. Ins. license# 0C23496, is a Registered Investment Advisor Representative with Financial and Retirement
Management and a registered representative with Securities America, Inc., a Registered Broker Dealer. Securities offered through
Securities America, Inc., Member NASD/SIPC. Financial and Retirement Management and Securities America are not affiliated.
 |  |  |  |  |  |  |  |
Robert Valentine, Ca. Insurance License# 0C23496, is a Registered Investment Advisor Representative with Financial and Retirement Management, a Registered Investment Advisor and a
registered representative with Securities America, Inc., a Registered Broker Dealer. Securities offered through Securities America, Inc., Member NASD/SIPC. Financial and Retirement
Management and Securities America are not affiliated. This site has been published for residents of AZ, CA, FL, IL, MI, MO, and TX. All information herein has been prepared solely for
informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Financial
and Retirement Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any
unaffiliated third party, whether linked to this web site or incorporated herein, and takes no responsibility. All such information is provided solely for convenience purposes only.
Financial and Retirement Management and Securities America do not endorse, control, or receive compensation from any of the third party advertisers within this website. Neither
Financial and Retirement Management or Securities America are affiliated with any of the firms or entities listed unless specifically stated.
registered representative with Securities America, Inc., a Registered Broker Dealer. Securities offered through Securities America, Inc., Member NASD/SIPC. Financial and Retirement
Management and Securities America are not affiliated. This site has been published for residents of AZ, CA, FL, IL, MI, MO, and TX. All information herein has been prepared solely for
informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Financial
and Retirement Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any
unaffiliated third party, whether linked to this web site or incorporated herein, and takes no responsibility. All such information is provided solely for convenience purposes only.
Financial and Retirement Management and Securities America do not endorse, control, or receive compensation from any of the third party advertisers within this website. Neither
Financial and Retirement Management or Securities America are affiliated with any of the firms or entities listed unless specifically stated.
Copyright © 2006 The Money Alert.com. All rights reserved.
