After a terrible 2008, the major indexes slipped another 25% within the first ten weeks of this year, a disaster few could have predicted. But you didn’t have to! As we discuss on page 5, we’re glad to have a system that works, and in this case, has kept our capital mostly safe from this bear market. We remain defensive, but looking ahead, we feel that the overall sentiment picture (as pessimistic as we’ve ever seen it) and the horrendous decline already seen means yesterday’s big market rally could be the start of something. We won’t predict, but when being bearish is so “comfortable,” it’s often time for the market to head up for a while. Thus, we’re spending hours researching new companies with unique products and services; as always, our Watch List is on page 3. When our indicators give us the green light, we’ll be ready to jump in ... but for now, patience is key.
