4th Quarter 2010

December 31, 2010 

Dear Clients,

Goodbye to 2010.  Goodbye to the first decade of the New Century.  In just a blink of an eye 10 years have gone by!  Do you remember what you were thinking and doing on the dawn of the New Century?  Hopes were high that the New Century would bring prosperity to everyone.

There is an old saying “hope for the best and prepare for the worst.”  The last decade probably didn’t turn out as we had wanted ― the US involvement in war, 2 stock market crashes, a recession that continues, unemployment near or at record highs, a housing market bubble and collapse, and Wall Street crime and corruption. We could go on and on but this is an end of the year letter meant to cheer you up not depress you.

We see the start of a new decade with some positive signs and we believe the economy and markets are picking up momentum.  Let us explain our reasoning.  First, the compromise on taxes for the next two years is a big uncertainty lifted off the markets. With tax rates at near historic lows, more money is available for consumers to spend, slowly moving the economy out of the recession.  Remember, accommodative fiscal policy is a major plus for markets.  Second, the Federal Reserve has voted to leave interest rates at all time low rates and to continue quantitative easing. This policy of easy money will, in the short run, help the stock market continue its momentum.

The two themes (Monetary and Fiscal policy) are in our opinion the most important issues that move markets.

Craig and I have worked extremely hard this decade to help you avoid the pitfalls that plague many investors. We constantly scan the markets, follow economic news, and listen to company reports trying to give you a better edge than the average investor. There is a lot of detail work that is done behind the scenes. We see our job as your partner, bringing you information that will help you make informed decisions.  In conclusion, we wish you a healthy and prosperous New Year and we appreciate your trust in allowing us to partner with you.

Sincerely,

Jay K. Rosenblatt, CFP®                                               Craig J. Rosenblatt, CPA

Just a note ― Craig and I are not associated with Tax Return Preparers and we are a completely separate business; we simply share the same building. It’s very important you understand this and continue to direct your investment concerns to us upstairs.