A Note From the President:

(February 12, 2009)

For the vast majority of Americans who had nothing to do with causing our current economic woes, dealing with its devastation has been a challenge of unprecedented proportions. Let’s examine where we are and the options before us:

From an investment perspective, the only place to hide in 2008 was U.S. Treasuries and gold, which for most of us was a very small part — if any — in our portfolios. As we all now know, financial stocks were the worst performers of the year. Consumer staples, health care, and utilities, while still posting net losses, performed better than other segments. The S&P 500 closed the year at -37.00%, and forced investors to consider the options:

• Re-balance now?
• Cash out?
• Continue to “grin and bear it?”

The answer is: it depends. The complexity of today’s markets, combined with each individual’s highly specific needs, means it’s time to bring in your trusted advisor. Developing best-case, worst-case and probable-case scenarios will help you prepare for varying potential outcomes, and by doing that, you not only have an action plan, you alleviate the stress of worrying about the unknown.

Since 1929, the U.S. has gone through nine financial crises*, and continued to thrive. This one is no exception. You just need a good outlook, good information and a good team. For all three, you can turn to Riverview. Just give me call.

John Karas
President & CEO
johnkaras@riverviewbank.com
(360) 693-7442

*Financial crisis is defined as annual periods when financial stocks declined by more than 10% and also trailed the broader market.