When we last wrote in this space, we referenced the market’s improved ability to digest economic data, and a willingness on the part of investors to wade further into the risk pool. Credit markets had stabilized materially from crisis levels and equity benchmarks worldwide were approaching official bull market territory. With the S&P 500 posting a total return of 15.9%,… Read More

In the six quarters since we began writing these summaries, there’s been little opportunity to mention bull markets. Indeed, with the S&P 500 falling another 11.0% to start 2009, and the included statements likely reflecting still lower valuations, you may be thinking it’s odd to even use such a phrase to describe the recent investing landscape. However, if you’ll read… Read More

In this very piece a year ago we assured you that 2008 would be an “adventure”. Given the events that unfolded, we doubt that anyone could now question the accuracy of that prediction. That said, being able to forecast adventurous times ahead is much different than knowing the future. In the following paragraphs, we’ve borrowed portions of a Top 10… Read More

While we did not enter the quarter expecting sleepy summertime markets, we surely wouldn’t have predicted or even imagined the scenarios that unfolded. By the end of September, we had witnessed several historic events: the government’s intervention with Fannie Mae, Freddie Mac, and AIG; failures at Lehman Brothers and Washington Mutual; two shotgun mergers that forced both Merrill Lynch and Wachovia into… Read More

As the second quarter began, investors held out hope that the worst of the credit crunch was over, and that stocks would rise as the economy regained momentum late in the year. On April 1st, the S&P 500 actually appreciated by 4.1%, and by mid- May the index was within 1.9% of being back at break-even for the year. However,… Read More

It has often been said that financial markets are an ongoing social experiment pitting fear against greed. As we reflect on the first quarter of 2008, it’s hard to disguise the fact that global markets remain in a season of unrest. In such times, it’s easy for a crisis of confidence to emerge that overshadows sound long-term thinking. To appease… Read More

The year that was 2007 is now one for the history books. To summarize, equities (represented by the S&P 500) finished this past year with a total return of 5.5%, while fixed income securities (as measured by the Lehman Aggregate Bond Index) gained a more impressive 7.0%. Interestingly, this was only the 8th time since 1900 (the beginning of our… Read More

As the third quarter began, investors seemed content watching both the Dow and the S&P 500 establish new alltime highs on the back of “merger mania”. The financial press seemed to cover this story almost point by point as major trading milestones were approached. However, by the middle of July, this attitude of passive optimism was overcome by the realization… Read More