Selective Profit Taking

Why Sell? Since our clients’ equity portfolios have appreciated significantly since the beginning of 1995, we have taken some profits in order to bring targeted equity allocations back in line. In addition, our predictions for higher interest rates have come to fruition, but have yet to negatively influence equity markets. We want to tread carefully whenever interest rates rise. Finally, …

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Where Do We Go From Here?

We have no quarrel with the Internet. On the contrary, it is probably the greatest communication and productivity enhancement since the development of the written word. We see the Internet quietly and immeasurably improving the profit margins of every company in which we invest. On a concrete basis, we see the Internet immediately boosting the revenues of Lucent Technologies, Hewlett …

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Occasionally, Bulls Roar

We are in the midst of one of the strongest equity markets in history. The combination of low inflation, low interest rates and superior corporate earnings have combined to produce outstanding equity returns. For the twelve months ended June 30, 1995, conservative equities (as measured by the S&P 500) have returned 26%, while the broader Russell 2000 is up 20%. …

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Quality Is Back

The markets surprised and disappointed most investors in 1994. The biggest surprise was the rise in interest rates, which caused losses to long term bond investors in the 8-14% range. Even the traditionally conservative utility investor witnessed a 20.8% decline in value. International stocks performed well until the final weeks of 1994 when the Mexican currency devaluation served to eliminate …

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More Sellers Than Buyers

Often the reason behind swings in financial markets is the fact that there exists either “more sellers than buyers” or “more buyers than sellers” of a given investment. Supply and demand factors occasionally become so strong that the underlying fundamental value of the investment is ignored in the process. We believe that this supply and demand thesis is why interest …

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