The letter summarizes recent market volatility and economic concerns. It discusses factors that have contributed to increased market uncertainty such as weakening job and housing data, European debt issues, and political battles in Washington. It also notes that forced selling due to raised commodity margin requirements exacerbated a pullback in commodity prices. However, the author believes the economic expansion remains intact and the recent turbulence is temporary. While inflation and growth concerns may rise in coming months, a return to recession is unlikely.