Letter – 2013 Q3
I feel like we’re climbing a mountain, reaching new heights, ascending ahead of most other hikers, but walking on a path that is getting narrower and has a little too much loose gravel. The view is pretty good, but there is a
Institutional sophistication. Individual attention.
I feel like we’re climbing a mountain, reaching new heights, ascending ahead of most other hikers, but walking on a path that is getting narrower and has a little too much loose gravel. The view is pretty good, but there is a
The stock market continued to defy skeptics by moving even higher in the second quarter, but at a much slower rate of gain than in the first quarter. The deceleration was due in large part to a 6% selloff over a four
The good news is that the S&P 500 Index provided a 10.6 percent total return in the first quarter of 2013. Once again, we outperformed the market – but not by enough to brag about this time. This has been the best
The two best years for the stock market since 2000 were 2003 and 2009; the first was a rebound from the tech crash and 2009 was a rebound from the banking crash. 2012 was the next best year. The S&P Index itself
Once again the stock market has confounded conventional wisdom, this time by rallying during the traditionally weak period of August and September. Many market observers felt that the quiet period during August was the calm before the September storm. But the market
After a very strong first quarter, the stock market took back about three-quarters of those gains by early June only to rally strongly in June – particularly on the last day of the quarter. The market’s retreat was due to sobering economic
Late on Friday March 9, Greece effectively defaulted. On the following Monday, the stock market yawned. One day later, it closed up nearly 2 percent. Who’d have imagined that? In retrospect, the best part of my last letter stated: “history has shown
This year truly was a roller-coaster – an unnerving ride that ended up almost exactly where it began. The news from Europe mattered more than news from individual companies. The European debt crisis produced a lot of volatility, particularly after July. The
It is easy to forget how quickly markets can adjust to changed perceptions of economic prospects and risks. The S&P fell about 226 points, from 1345 to 1119, or 16.8%, in only ten trading days in late July and early August. Since
Rhetoric that spawns class warfare may feel cathartic, but it doesn’t help anyone. I’m concerned that it makes the less fortunate more resentful, and also causes those most capable of creating jobs to pull back. So I was surprised at the tone