24 May 2013

Posted at 10:32h in The Friday Brief by
There is a danger in rising (and falling) markets that is so subtle we can easily overlook or ignore it. In fact, it is so integrally woven into our human fabric that separating the logical strands from the emotional ones is nearly impossible.

22 Mar 2013

Posted at 12:05h in Briefs about our Process, The Friday Brief by
One of the most challenging issues we face as investors is the temptation to change, or worse, abandon our carefully reasoned investment plans for perceived threats or opportunities. In these instances we wonder whether we should apply the brakes or step on the accelerator. It seems only as a last resort do we consider sticking with our carefully laid-out investment plan, ignoring the temptations of the day.

20 Mar 2009

Posted at 16:44h in The Friday Brief by
Today, there is a strongly held belief that financial markets are efficient. The efficient market hypothesis maintains that prices of traded assets such as stocks, bonds, or property adequately reflect the sum of all known information at any given point in time. With today’s rapid flow of information, we see prices adjusting ever more quickly and with greater volatility. The hypothesis also asserts that it is impossible to consistently outperform the market by using any information the market already knows, except through luck. There are strong and passionate opinions on both sides of this hypothesis and it is not our goal to defend or to debunk them today. Rather we aim to point out that because of the widely held belief in market efficiency there are some exciting opportunities that have strong potential if we lengthen our timeframe beyond nest week or next year. We want you to know about them.

16 Jan 2009

Posted at 15:41h in The Friday Brief by
New revelations about the weakness of America’s banks have kept the pressure on stocks. The S&P 500 is down 5.2% at the moment but remains 14% above the market’s low reached November 20, 2008. A major reason stocks are holding up in the face of relentless economic news is their yield. Dividends paid on S&P 500 stocks are roughly 3.5%, which compare very favorably to the 10-year Treasury yield of 2.4%. Stocks are also up on investors’ high hopes for Obama’s economic team and their ultimate stimulus package.