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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.

About Us

Dightman Capital Group Inc., a Seattle, Washington Registered Investment Advisor, was founded in 2007 by Brian Dightman. After nearly 6 years at a RBC Dain Rauscher managing investments and wealth plans for investors, Brian realized the best form of investment management and wealth planning is going to come from a source absent research and other conflicts. Previously Brian was able to work on section 16 officer diversification plans, employee stock option strategies, estate planning techniques, retirement income strategies, college financial planning strategies, small business retirement plans, and a wide variety of other investment management and wealth planning projects. You may recognize Brian from stock reports he delivered on Seattle radio stations KIRO AM 710 & KTTH AM 770. Brian is a Level II CFA Candidate and a Certified College Planning Specialist (CCPS).

Brian is joined by Erik Anderson, an Economics major from the University of Washington. As an Associate at Dightman Capital, Erik serves as the primary college planning specialist. He is also responsible for research, client service and business development activities.

Dightman Capital Group is committed to helping clients understand the different choices available to accomplish life's financial goals. We do not have incentives to offer specific investments to clients.

We believe a current financial plan serves as the foundation for a well executed strategy. We believe in passive investments as core holdings, emphasize asset class selection and weight and offer portfolio strategies that shift as economic conditions change to those clients interested in that type of service.

We are committed to delivering outstanding service, sophisticated and knowledgeable advice, and can serve as a registered investment advisor to individuals, businesses, trusts, partnerships, not-for-profit organizations and retirement plans.

A few of the unique characteristics of our firm include:

Fee Only — Dightman Capital is a fee-only investment advisor; our interests are firmly aligned with yours because we are not compensated by investment providers.
Approach — We will introduce you to a lifetime planning and investment approach based on sound academic and award winning research.
People — Dightman Capital is committed to fostering an atmosphere that reflects the highest level of personal and professional integrity.