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While the stock market is behaving fearfully, we want to devote this issue to the thesis that the human capacity for innovation is an inexhaustible source of power that routinely topples seemingly intractable challenges. Our genius for betterment has flourished in the social arrangement known as democratic, free-market capitalism. Its promise of rewards for our efforts tends to subdue our baser instincts of fear and envy, and to stimulate the powerful creativity with which we are endowed.

As sovereign debt keeps rising, so have the prices of fixed-income investments. J. Michael Martin was quoted in Financial Planning Magazine. See highlighted copy for Mike's quotes.

PATIENCE is the most difficult of investment virtues to develop; hence it is the least practiced. Perhaps because patience is rare, it is also highly rewarding for those who persevere! At this writing, the Dow Jones Industrial Average is down a rather remarkable 488pts, a decline of -4.4% in 1 day. The index is testing the lows of this year, and is -17% from the highs of early May. The sudden decline is causing no small amount of angst among traders and especially among investors without a rational plan.

J. Michael Martin quoted in the Wall Street Journal. Don't Join the Ostrich Generation Amid the Choppy Markets. Too Many Soon-to-Be Retirees Have Avoided Making Key Decisions. Here's What to Do — Right Now

Friday evening, August 6, Standard & Poor’s announced a controversial removal of its long-standing AAA imprimatur on U.S. Treasury bonds. S&P’s reason for the slight downgrade to AA+ is that they see no evidence that our political process can reverse the growth of government debt in relation to either government revenues or the nation’s private sector activity. Both the deficit and the nation’s debt burden appear out of control. In the following memo we offer some insights into what is really going on, as well as a summary of FAI’s investment approach to prospering in this new environment.

You can’t turn on a news channel or open a newspaper without being bombarded by scare mongering about the political posturing and economic prognostications concerning Congress’ self-imposed Federal Debt ceiling. Clients have been asking whether the situation is serious and how their portfolios are protected against the risks and uncertainties. So we thought you might appreciate an update from our Investment Team.

What is it about gold? In the past 10 years, the price of one ounce of pure gold has risen from less than $300 to $1,500, far outpacing the return on stocks and bonds. And yet, to paraphrase the comedian Rodney Dangerfield, “It don’t get no respect” in most gatherings of professional investors. Why is that? Why is the yellow metal treasured in some quarters and disdained in others?

J. Michael Martin interviewed for Market Watch. Middle East stock markets ended mixed Monday, with most major stock markets in the region moving less than 1% higher or lower in the wake of news that U.S. forces killed al Qaeda leader Osama bin Laden.

J. Michael Martin quoted in the Wall Street Journal. Treasury Secretary Timothy Geithner on Tuesday said the U.S. would never intentionally weaken the dollar. But that doesn't mean the struggling currency, mired at a three-year low, is poised for a big rally soon.

Mary Thompson worked at the highest level of IT in the financial industry for many years, then put her career on hold when she had two children. When her youngest entered kindergarten, she faced what many women dread: reentering the workforce. She was hired at Financial Advantage to do client services, for which she was overqualified, but the company let her work the part-time schedule she wanted.