Protect...Grow...Repeat

Market & Economic Brief

Summer 2010

GLOBAL STOCKS
Stocks generally ended the first half of 2010 under pressure. The S&P 500 was down -7.5% and the MSCI Developed Country index declined -15.8%. Q2 earnings reports are expected to be strong but forward guidance is less certain. Leading companies held up surprisingly well as markets sold off.

WORLD ECONOMY
Leading economic leading indicators produced by ECRI continue to signal a slowdown in the U.S. economy but will need to deteriorate further before signaling another recession.

INFLATION DATA
Broad inflation pressure appears to be contained and interest rates remain very low.

U.S. RESIDENTIAL HOUSING
After a pick-up earlier in the year, home sales appear to have slowed after the expiration of the home buyer credit at the end of April in most U.S. markets.

PLANNING
New conversion rules for ROTH IRA's in 2010 may present a unique planning opportunity.

Potential tax changes in 2011 are reason to review tax strategy in 2010.

Frequently Asked Questions

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

Q. Do Dightman Capital employees managing client money invest in the firms strategies?
A. Yes. We sit at the investment table with our clients and invest in the same strategies we manage.

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 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. Does Dightman Capital have custody of my investments?
A. No. Clients provide Dightman Capital with discretionary trading authority to execute transactions on their behalf, but they remain in control of their assets. Accounts are held in the name of the client at Fidelity Institutional Wealth Services.

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

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. We have very reasonable minimums that vary depending on whether you are in the asset building or distribution phase of life. Ideally, clients will have several accounts invested with us. We assess each client opportunity individually. Through our relationship with Fidelity we are able to address a wide variety of client investment management needs. Please contact our office for more information.

Q. Do I have to sell my current holdings to work with Dightman Capital.
A. In some cases we may be able to use a current investment as an alternative to an investment currently used in our strategy.

Q. Can Dightman Capital serve investors outside of the Seattle area?
A. Yes. With the advent of modern communication 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.

If you have an additional question please contact us!