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Market & Economic Brief

November 19, 2008

WORLD MARKETS
After attempting a rally earlier in the month, U.S. stocks broke recent support levels and established fresh lows. Commodities and World REITs have also found new lows. Many international stock markets are still maintaining previous support levels. Intermediate term U.S. treasuries continue to rally in a flight to quality. The near term bias has again turned negative for stocks.

WORLD ECONOMY
The weekly leading and monthly coincident indexes we follow continue to weaken, suggesting more trouble ahead for the U.S. economy. Many European countries continue to report deteriorating economic conditions as well. China reported a dip in October retail sales but consumer spending has held up better than many other parts of their economy.

INFLATION DATA
Producer costs fell a record 2.8% in October, led by a huge decline in energy prices. Future inflation indicators we track also continue to decline.

U.S. RESIDENTIAL HOUSING
The Nat’l Association of Home Builders fell to its lowest level since 1985 in November. Home prices declined in 4 out of 5 cities during Q3. The FDIC has proposed using $24 bil. of the TARP funds to help stem foreclosures. The leading home price index we track rose slightly for August (the latest data available). Additional increases may signal a bottom in housing prices.

Frequently Asked Questions

Below are common questions about or firm and the services we provide. If you have a question that is not addressed below, please contact us.

Q. What is a Registered Investment Advisor (RIA)?
A. An RIA is registered with the Security and Exchange Commission or a state regulatory agency for the purpose of managing clients' investments. Registered Investment Advisors charge a fee to clients and are not compensated by brokerage commissions or by investment companies for the sale of products. Registered Investment Advisors are required to act as fiduciaries on behalf of their clients.

Q. Is there a cost to hold an initial meeting?
A. An initial meeting is complimentary. We believe it is important for potential clients to learn about our disciplined approach to managing money and developing sound financial plans to determine if we will be a good long-term fit.

Q. Does Dightman Capital have investment minimums?
A. At Dightman Captial we are serious about helping our clients build their financial wealth. Our clients have their eye on long-term goals and understand that it takes patience and fiscal discipline to reach these goals. Our investment minimum is $200,000 for clients in the early stages of building their retirement assets and $500,000 for clients already in retirement. These investment minimums may be waived for persons related to or referred by existing clients. Other circumstances may be considered, so do not hesitate to contact us for a consultation.

Q. Do I have to sell my current holdings to work with Dightman Capital.
A. We will evaluate your current investments to determine which securities can remain. In some cases, we are able to use current investment as an alternative to a currently recommended investment.

Q. Does Dightman Capital hold my investments?
A. No. You provide Dightman Capital with discretionary trading authority to execute transactions on your behalf, but you remain in control of your assets. Your accounts will be held in your name at Fidelity Institutional Wealth Services.

Q. Do I have online access to my account information?
A. Yes. You will have online access to monitory your investments and download important tax and financial data.

Q. Can Dightman Capital serve investors outside of the Seattle area?
A. Yes. With the advent of modern communications technology, it is possible for us to conduct a portfolio or financial plan review from anywhere in the country.

Q. Does Dightman Capital offer other services like financial planning?
A. Our primary focus is helping clients achieve financial objectives with sound investment strategies, but we do believe there can be tremendous value in the financial planning process. We offer retirement saving, income generation planning, college planning, restricted stock, and other financial planning strategies. In certain circumstances we will bring in a CPA, attorney, or other professional to assist with specialized needs.

Q. Will Dightman Capital work with a client on the basis of a financial planning only?
A. Most often our financial planning work is in conjunction with our investment management work, but we do offer stand alone financial planning services, especially in the area of understanding and potentially lowering college cost.

If you have an additional question please contact us!