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29 Jun 2012 Bright Spots

Posted at 12:27h in The Friday Brief by Sam Bass Jr.

News this week has been mixed, but there have been some bright spots to celebrate. The beleagured housing industry may finally be turning around. The manufacturing sector had a couple pieces of good news well. If you work in the White House or among the Democratic leadership, yesterday's surprising announcement from the Supreme Court that the President's health care bill had largely escaped overturn was undoubtedly a bright spot. And today we are greeted with news that Europe's leaders have found a way to avert a Spanish banking collapse.

15 Jun 2012 Uncertainty Continues

Posted at 11:29h in The Friday Brief by Sam Bass Jr.

US equity markets are off their May lows by about 4.5% to 5% depending on the index while economic releases continue to show the economy slowing. These reports and news from Europe and Washington's ambivalence over the approaching fiscal cliff all keep a pretty tight lid on short-term optimism.

08 Jun 2012 Why Do We Not Sell In Falling Markets?

Posted at 13:05h in Briefs about our Process, The Friday Brief by Sam Bass Jr.

Last week's Brief discussed how markets have telegraphed or predicted, since April, the recent slide in equities. It raised a question from a few of you as to why we don't sell when we know stocks are going down? It is an excellent question deserving of a thoughtful answer, as it goes to the heart of our investment management philosophy.

01 Jun 2012 Treasuries Remain the Best Hedge Against Equity Risk

Posted at 17:28h in The Friday Brief by Sam Bass Jr.

Europe is unraveling and signs are mounting that the global recovery is in jeopardy. A Chinese purchasing managers’ index showed manufacturing grew less than estimated last month in that country, the weakest production growth since December. Manufacturing, the stalwart of the US recovery, grew at a slower pace in May in response to weakness in the global economy. A similar gauge of manufacturing in the 17-nation euro zone fell to a three-year low of 45.1 in May. And unemployment in the US unexpectedly increased providing further evidence that the labor-market recovery is stalling.