Greetings, I hope all of you are enjoying what is shaping up to be a beautiful summer.
I wanted to update you on some recent actions we have taken and give you some insight into where we think this global recovery is at. As I mentioned in our last blog/correspondence, we are cautious but optimistic. U.S. jobs, retail sales and housing numbers indicate a “soft spot” in the recovery. However, additional data has been released that we feel warrants us being more defensive. Falling consumer confidence, the potential for a double dip in housing and policy risk are our major concerns. This time it seems like the republicans, under the cover of no more deficit spending, appear to be thwarting attempts at additional stimulus. While I’m a strong advocate of living within your means, timing could be poor to make a stand unless your timeframe was more focused on the November elections.
Remember I’m not taking sides, just reporting that things could get bumpy if the tracks need a little more grease and they get none because of political squabbling and posturing. Eventually both parties will have to compromise and do what’s best for the economy. They’ll have no choice, but timing is everything.
So what did we do? We reduced client equity exposure. We took profits in the consumer discretionary area. Consumers are definitely holding back and who can blame them with so few jobs being produced. We also reduced positions and managers that we thought were underperforming. So what are we going to do next? We’ll look for profitable ideas that are more defensive – remaining flexible enough to participate in growth when risks to the global economy have diminished. Some clients need more guarantees. Some need less volatility. Everyone wants solid total returns. Even though we feel we know each of you well, we’re always interested in your thoughts. Please don’t hesitate to contact us with your questions or concerns.
Yes, I’m sad to report that the U.S. Soccer Team lost, but I’m proud of the way that they played. The American Spirit is still alive!
This entry was posted
on Wednesday, July 7th, 2010 at 3:08 pm and is filed under Market Commentary.
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Market Outlook / Recent Investment Changes
Greetings, I hope all of you are enjoying what is shaping up to be a beautiful summer.
I wanted to update you on some recent actions we have taken and give you some insight into where we think this global recovery is at. As I mentioned in our last blog/correspondence, we are cautious but optimistic. U.S. jobs, retail sales and housing numbers indicate a “soft spot” in the recovery. However, additional data has been released that we feel warrants us being more defensive. Falling consumer confidence, the potential for a double dip in housing and policy risk are our major concerns. This time it seems like the republicans, under the cover of no more deficit spending, appear to be thwarting attempts at additional stimulus. While I’m a strong advocate of living within your means, timing could be poor to make a stand unless your timeframe was more focused on the November elections.
Remember I’m not taking sides, just reporting that things could get bumpy if the tracks need a little more grease and they get none because of political squabbling and posturing. Eventually both parties will have to compromise and do what’s best for the economy. They’ll have no choice, but timing is everything.
So what did we do? We reduced client equity exposure. We took profits in the consumer discretionary area. Consumers are definitely holding back and who can blame them with so few jobs being produced. We also reduced positions and managers that we thought were underperforming. So what are we going to do next? We’ll look for profitable ideas that are more defensive – remaining flexible enough to participate in growth when risks to the global economy have diminished. Some clients need more guarantees. Some need less volatility. Everyone wants solid total returns. Even though we feel we know each of you well, we’re always interested in your thoughts. Please don’t hesitate to contact us with your questions or concerns.
Yes, I’m sad to report that the U.S. Soccer Team lost, but I’m proud of the way that they played. The American Spirit is still alive!
Don
This entry was posted on Wednesday, July 7th, 2010 at 3:08 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.