Greetings –

It goes without saying that the volatility we have experienced this week is unsettling. We are in the midst of a more detailed communication on the subject, but in the meantime we wanted to let you know that we are thoughtfully assessing the situation.  The bottom line: we believe this is much more likely a buying opportunity than a reason to reduce exposure to stocks.

For many months now, we have been commenting on the historic – nearly uninterrupted – rise in the markets, since the lows of 2009.  Over the past two years we have had only ONE correction of 5% or greater (last October), which quickly dissipated as the market went on to new highs.  In other words, the volatility should not be unexpected – though we fully appreciate that it is never easy to digest.

We are now at the point where many of the high quality equities we follow closely are trading at very attractive valuations.  We see ample opportunity to put cash to work at levels which should produce attractive total returns over the long run.  For clients who are fully invested, we will be reviewing portfolios for opportunities to optimize investment characteristics and harvest tax losses.  For those who rely on portfolio income, we have complete confidence that dividends are not at risk for the quality companies we select with this attribute in mind.

Please don’t hesitate to contact us if you would like to discuss your portfolio.

Sincerely,

HM Payson

If you have questions or comments regarding this or any other of our communications, please email us at:
info@hmpayson.com

One Portland Square
5th Floor
P.O. Box 31
Portland, ME 04112
207 772 3761

Ten Bristol Road
P.O. Box 98
Damariscotta, ME 04543
207 563 1854