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Investment Summary-

Thank goodness for broad diversification in our investment portfolios. While the portion of our accounts that are in unhedged stocks and bonds have been subject to the worst bear market since the Great Depression, our diversification into real estate, trust deeds and hedged stock and bond funds have held most accounts to losses in the low single digits. Stable, cash flowing assets never looked so good…

Investment Summary-

Despite a weak economy and stock market, Optivest investors experienced a surprisingly good second quarter.  All of our hedge fund investments were up, our Sector Logic stock portfolios were up 8% and our real estate investments performed as expected.  The only disappointment has been our Schwab Bond investments which remain at discounted levels; however, they continue to pay uninterrupted cash flow.

US Economy
What a wild ride the first three months of the year has been! The sub prime mortgage problem, compounded by highly leveraged investment vehicles (CDOs), caused a bona fide banking panic culminating in the mid March government sponsored bail out of Bear Stearns, steep drops in the stock markets and the floating of $200 billion of Federal Funds to help weak financial institutions meet minimum capital requirements.