01 Apr 2005

Posted at 15:23h in The Friday Brief by
The market’s bounce in February was not enough to overcome the declines in January and March sending all of the major equity indices down for the quarter.  The Dow Jones Industrials and the S&P 500 each declined 2.1% while the NASDAQ fell almost 8%.  Bond indices didn’t fare much better as the Lehman 1-3 Year, the 7-10 Year, and the 20 Plus Year indices declined by .3%, .9%, and 1.6%, respectively.  Our models performed in line with their respective benchmarks for the quarter. 

24 Mar 2005

Posted at 15:25h in The Friday Brief by
Since our last Brief a couple of weeks ago, inflation has taken center stage as the new hand-wringer.  On March 2nd oil blew through its most recent high of $52.88 reached on October 26th.  It now stands at $56.62 per barrel.  But the economy seems relatively unfazed.  That is until recently.  It now appears that businesses are beginning to pass along their commodity and labor prices to consumers.  On Tuesday, Greenspan seemed to confirm what many had been worrying about for months; that inflation is creeping back into the economy.

04 Mar 2005

Posted at 16:26h in The Friday Brief by
The economy continues to show signs of strength and expanding breadth.  Consumer spending, which represents two thirds of our economy, has been the steady sustainer since recovery began in late 2001.  Low interest rates and taxes have provided consumers with more spending power.  Not until the second half of 2004 did the corporate sector join the party, but it is coming on strong.  Most recently business investment has grown at the fastest pace since 1997.  It will likely take a leadership position from here as the consumer shows signs of slowing somewhat.

18 Feb 2005

Posted at 16:40h in The Friday Brief by
Yesterday, Federal Reserve Chairman Alan Greenspan appeared before the House Financial Services Committee.  His prepared remarks were identical to those he gave the Senate Finance Committee the day before, but his responses to members’ questions were particularly candid and enlightening.  Here are some of the highlights of his remarks on topics that most directly affect long-term investors.