Wednesday, August 16, 2006

August blahs............

I knew we were close to a short term rise in the market. I took a call this week from a wonderful client. He sounded worried. He said his portfolio had come off the high water mark we set earlier this year. You see, clients generally call when a turn in the market is at hand. More often than not, they want to do the wrong thing at the wrong time.

From my vantage point, I figured the market was going to pull back in the late spring. It did. A nice pullback given the moves in gold, crude oil and interest rates. Markets move up and down on greed and fear, pain and pleasure, supply and demand. Human emotions haven't changed in 10,000 years. Indeed technology advances have brought faster moves, great volatility.

I told this fine client of Chippewa Partners that the market was in a short-term pullback. A normal correction. His account isn't managed on an absolute basis it is managed on a relative basis. I told him this correction would eventually change and the market would go on to higher highs. I called this a normal, necessary pull-back irregardless of what is going on in the hills of the Middle East in an area the size of the Indian reservation I grew up on in western South Dakota.

I know clients get caught up to listening to the babble on CNBC regarding short term market swings that have no bearing on the long term performance of their equity exposure.

You see, stocks solve long term problems, inflation being one. Our posture hasn't changed over the last few months of volatility. We remain long term owners of some great companies.

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Native American Advisors CHIPPEWA PARTNERS

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CHIPPEWA PARTNERS, Native American Advisors, Inc. is a Registered Investment Advisor, founded by Dean Thomas Parisian in 1995. The firm is a manager to an exclusive clientele and is closed to new clients. As a Registered Investment Advisor, our expertise developed over 35 years balances experience, integrity and tremendous work ethic. Dean Parisian is a member at the White Earth Reservation of the Minnesota Chippewa Tribe, a former NYSE and FINRA arbitrator and trader who began his career with Kidder Peabody and later worked for Drexel Burnham Lambert in LaJolla, CA. His philanthropic interest is in Native American education and he's endowed a significant scholarship for Native Americans at the University of Minnesota. His greatest accomplishment includes raising two sons and 26 years of marriage. The Parisian family enjoys outdoor pursuits at Pamelot, their farm in Tennessee and at the Ghost Ranch, their ranch on the Yellowstone River in Montana. For media requests contact the firm via email: ChippewaPartners (at) gmail dot com, on Twitter: @DeanParisian. Global 404-202-8173