Dightman Captial Group
We manage adaptive investment strategies, as part of a comprehensive planning environment, designed to protect capital in sustained market contractions and grow capital during market expansions.

Protect...Grow...Repeat

Market & Economic Brief

March 4th, 2010

GLOBAL STOCKS
Stocks are making a recovery attempt from the pullback that developed in the middle of January but remain vulnerable, in our opinion.  We will not be surprised if stocks reach new highs in the current rally but have become more alert for another, potentially more significant, correction. 

WORLD ECONOMY
Leading economic indicators by ECRI are starting to point to a slowdown in the U.S. economy toward the middle of the year.  Debt issues in Europe, the Middle East, and some U.S. states continue to pose potential problems.

INFLATION DATA
Inflation generally appears to be contained and continued deflation concerns appear to be off the table for the time being.

U.S. RESIDENTIAL HOUSING
The housing market has stabilized but weakness has started to reappear in parts of the market.

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

Concentrated Stock Strategies

You have worked hard to build your wealth and find yourself with the benefits of stock ownership as an executive or director in a publicly traded company but there are challenges to diversifing your position.  Aside from the unintended emotional characteristics tied directly to the company and the volatile nature of stocks, company and regulatory rules may restrict your ability to transact in public markets. Possible liquidity restrictions include: Lock-out Period, Black-out Dates, Rule 144, and other considerations.

Depending on your circumstances, the SEC has adopted a rule that provides limited safe harbor to individuals that closely follow it. Even better, the rule is relatively easy to understand, establish, and administer offering a new tool for insiders to create liquidity from stock and option holdings.

For those individuals interested in exploring the benefits of diversifying their personal wealth tied to concentrated stock or option holdings, Dightman Capital can help you explore possible solutions. The principal Investment Officer at Dightman Capital has advised and implemented diversification strategies for Section 16 Officers, S-3 Registrations, Initial Public Offerings, and other concentrated stock and option holders. Potentially even more important, Dightman Capital avoids direct association with capital market underwriters or research analyst often found with Wall Street firms and banks.