Our Philosophy Our firm does not invest client funds in "proprietary" products. This gives us the ability to be unbiased in selecting from the thousands of mutual funds and money managers in existence. This is a tremendous advantage when attempting to achieve our clients` goals and objectives. Additionally, it allows us to minimize any potential conflicts of interest when making recommendations. We utilize primarily no-load mutual funds, private money managers, and individual stocks and bonds. Our research database currently contains over 15,000 mutual funds and money managers. We utilize fundamental investment analysis in determining recommendations. Our decisions are long-term in nature and are not contingent upon day-to-day market fluctuations. Performance is measured relative to comparable peers/indices in the same segment of the market. We believe you can not time short-term market movements. We do believe in long-term consistent performance from superior money managers, and superior individual companies that have good management at the helm. We view our investment management function as making sure that our clients have their accounts allocated across many asset classes and with specialists in each of those areas. Our client accounts have multiple managers, each exhibiting expertise in their respective niche. We believe the following: Asset allocation (the selection and weighting of multiple asset classes in a portfolio) and diversification (the selection and weighting of multiple securities within an asset class) result in superior risk adjusted performance while minimizing losses during down markets. The initial asset allocation decision is the most important investment decision made in the long-term performance of a portfolio. Market timing does not enhance returns. The best investment strategy is a buy and hold strategy with periodic rebalancing. Equities (stocks), although more volatile in the short-term provide superior long-term returns over fixed income type investments. In addition, stocks have been the only asset group that has greatly exceeded inflation over long time periods. Investors should be aware that risks are inherent in all investments. Fixed Income (bonds), fixed income type investments provide timely income payments that can be counted on. They help give a portfolio added stability to match a client`s risk/reward objectives. They do not protect well against inflation and should not be construed as growth investments. The multi-asset class (diversified) portfolio, exhibits two appealing characteristics. First, its overall losses can be less than an overly concentrated portfolio of one asset type. Second, it can rebound back to its original level faster than an overly concentrated portfolio. These characteristics are important, because the key to successful investing is staying the course long-term, and not making short-term decisions based on current feelings. A multi-asset class (diversified) portfolio makes it easier to maintain a particular investment strategy during down periods thereby dramatically increasing chances of long-term investing success. Talley Financial, Inc. - A Registered Investment Advisory firm conducting Asset Allocation fee only business and strategy.