The record-setting heat wave that recently took hold over large swaths of the United States has left millions of Americans feeling a little worn out and lethargic. During the second quarter of 2012, despite periodic episodes of both up and down volatility, global markets can be described in an overall similar fashion. Over the last few months, clouds of uncertainty trapped and… Read More
While our role as your trusted advisor calls for delivery of an “expert” opinion, we’ve used this venue in the past to highlight the fallacy of near-term market prognostication. Entering 2012, many prominent industry professionals and investors alike had settled on a “muddle through” scenario, in which a multitude of macro concerns were being weighed against a backdrop of fairly attractive valuations…. Read More
“It was the best of times, it was the worst of times…” Opening line, Charles Dickens 1859 novel Tale of Two Cities. Investors can’t be blamed if they felt the same way about financial markets in 2011. Indeed, even seasoned industry professionals have grown frustrated with the recent experience, which includes a heavy dose of uncertainty and sparse gains. Thankfully, in reviewing the statements that follow, you’ll… Read More
The first known use of the word “gridlock” occurred in the early 1970’s, and is generally attributed to officials within the New York City Department of Transportation. In its original context, the noun refers to a traffic jam in which a grid of intersecting streets is so completely congested that no vehicular movement is possible. By extension, the term has since… Read More
Like many that have come before it, the second quarter of 2011 offered a full palette of potentially grave scenarios. Media headlines and expert commentators alike focused our attention on the “soft patch” being felt throughout the global economy (growth rates below 2% in most developed countries), the fact that domestic unemployment remains challenging (1-in-6 Americans lack the work they desire), inflation that’s… Read More
Global financial markets extended their rally during the first quarter despite significant unrest across parts of Northern Africa and the Middle East, a massive earthquake, tsunami and partial nuclear meltdown in Japan, renewed sovereign debt issues in Europe, and continued inflationary pressures in several key developing economies. Although these exogenous shocks did cause a temporary spike in the “fear gauge” commonly known as… Read More
Wrapping it up into a single sentence, 2010 could be described as the year in which global equity markets managed to tack on impressive gains despite an anemic economic recovery and a host of other macro concerns. Not only did the world survive, but we realized once again how well societies and companies can withstand misfortune and still churn forward…. Read More
Oceanic tides, or the cyclical rise and fall of seawater, are one of the most powerful forces on Earth. Tides are caused by slight variations in the gravitational pull of the moon and sun, and the rotation of our planet. Many parts of the world experience mixed tides, where successive high-water and lowwater stands differ appreciably. Given the recent experience, we… Read More
In “normal” times, relatively small countries in southeastern Europe are not capable of holding hostage the world’s vast financial markets. After all, the market capitalization of publically traded Greek companies is only about $65 billion (1/4th that of Exxon Mobil Corporation (XOM)), and its Gross Domestic Product (GDP) represents less than 0.6% of the world’s total output. Despite this numerical insignificance,… Read More
In reviewing the statements that follow, you’ll notice that global equities extended their rally during the first quarter, albeit at a more moderate pace. The benchmark S&P 500 appreciated by just over 5%, Small Caps once again outperformed their larger brethren, and International equities lagged somewhat given currency fluctuations. Cash continues to provide a negative real return (rate less than inflation),… Read More