WHERE WE ARE HEADED 

Yesterday, the S&P reached all time highs and briefly exceeded the psychologically important 2000 level.   Though catchy, the 2000 level has little to no relevance.  The S&P has now had 12 days of virtually uninterrupted gains.  Technically, the correction that began in late July was nullified a few days ago.  However, a better entry point for long positions should be forthcoming when the market takes a pause.  That pause is likely to come any day, as the market cannot sustain these gains much longer without a rest.  What makes the rally all the more impressive is that it comes in the midst of a pretty disheveled rest of the world.  The geopolitical headlines certainly have not helped the markets and, yet, the drum beat continues as the markets continue to stretch further and further.  Some have argued, and it has some merit, that the rest of the world is so screwed up that the US is the only place worth investing right now.   That has likely led to a lot of foreign assets looking for a home in the relative sanctuary of the US markets.  We continue to believe that we will see a decline of some greater significance sometime in the next couple of months but that we will finish the year at these levels or above.  

HOW WE ARE DOING

As I watched the US Open tennis matches last night I reflected on one of the many good things that Sam instilled in me.  From an early age, I remember being out on the tennis court with him hitting balls and eventually getting to the point where I could challenge him and give him a good match (it should be noted that he stopped wanting to play me when I started making him sweat too much!).  With college, marriage and kids, I played little to no tennis up until a few years ago when I rediscovered the game.  Now I play a few times a week and have a league that I play in through the summer (our team clinched the title last week).  Sam, too, has continued to play and gets out there a time or two every week.  One of my claims to fame was that I used to beat regularly a kid by the name of Chris Woodruff.  Chris went on to play at UT, turned pro and had a successful pro career - even beating the likes of Andre Agassi in the French Open.  It would be well enough to leave the story there but I would be remiss in not sharing that I was 15, Chris was 8 and I was a full foot taller than him when I was beating him regularly! 

Context is always important and while the current stock market looks good from the outside, all might not be as rosy at it may seem.  Let's hope this rally lasts for a while longer.

Sam and Bo 

Your financial partner for twenty years and counting because managing your money never gets old.

We continue to make posts to our blog throughout the week so check it regularly if you want to see our thoughts.  You can access it by following the link below.  

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THE GREATEST COMPLIMENT

In these uncertain times, a trusted financial adviser is more important than ever.  Whatever comes over the upcoming months and quarters, the markets are certain to have lots of volatility and wild swings.  Europe, the US economy and dysfunction in Washington, and continued trouble in Iran and the Middle East to name just a few.  If you have family, friends and neighbors that may benefit from our services, would you please forward this email and/or provide our contact information to them.  We purposefully do not spend time marketing our services so that we can devote all of our resources to managing your assets.  Thank you to all who have provided us referrals - it truly is the greatest compliment you can give us.      

Remember to visit our blog for market comments and observations in between newsletters.  We try to provide a few comments in between newsletters and certainly when there is a particularly interesting market day.  You can access it by clicking here. 

Published by Sam C. Bills, Jr.  Copyright � 2008 Bills Asset Management.  All rights reserved.

BAM Market Wrap is produced and distributed regularly via email by Sam C. Bills, Jr. of Bills Asset Management  3001 Flagstone Drive, Franklin, TN 37069 Phone (615) 371-5928 Fax (615) 250-4903 - www.Billsasset.com

Bills Asset Management  is an independent registered investment advisor (RIA) not associated with any financial institution.  Data used in this publication is gathered from reliable sources, although completeness and accuracy cannot be guaranteed.  Performance results do not take into account any tax consequences and are not predictive of future results.  This publication does not give any specific investment advice, does not provide financial planning services, or consider any individual's financial situation, needs or goals.  This publication may not be reproduced or retransmitted in whole or in part without the consent of the author, Sam C. Bills, Jr.

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