Here is the data for the last 13 months: 

         The only wise thing to do in these circumstances is to do exactly what we are doing- buying superb, financially secure and dominant corporations, defensive positions in precious metals and a huge position in short-term Treasury bills.

         Much of what will happen in 2009 is unknowable at this juncture so the appropriate response is to maintain a flexible (with great emphasis on the flexible) and conservative portfolio. It is certainly not a time to be aggressive and to make bold bets and nor is it a time for the "mattress" approach to investment. There is a non-trivial chance that short-term bank and Treasury investments will be quite dangerous to one’s financial health in 2009

         In other words flexibility and hard work will be the keys to a successful 2009 as they were in 2008.
 
         We are always risk averse and nothing has changed in our approach in the last 12 months. We are value investors and we seek value wherever it occurs and in whatever form. We expect to be very active in the coming year as we work to protect your assets.
 
         The World economic forum is currently being held in Davos, Switzerland.

        Here is something from yesterdays meeting which confirms, and underlines, the degree of the devastation:
 
  “The past five quarters have seen 40pc of the world's wealth destroyed and business leaders expect the global economic crisis can only get worse.

Steve Schwarzman, chairman of private equity giant Blackstone, said an "almost incomprehensible" amount of cash had evaporated since the financial crisis took hold.

"Business will be very different," he added.

His comments came on a day of the World Economic Forum characterized by the gloom of its participants and warnings that the crisis will endure for some time. News Corp chief executive Rupert Murdoch kicked off the meetings by warning that the atmosphere was worsening – despite global economic confidence plumbing the lowest depths on record.

"The crisis is getting worse," he said. "It's going to take drastic action to turn it around. I believe it will take a long time."
 

        We will continue to work diligently on your behalf. Please write or call with any questions.