Newsletter Q4 2016

/in ,

Where does that lead us? As contrarians, we have added to dividend paying stocks especially the beaten down and vilified healthcare sector.  We are also positive on technology, mid and small cap stocks and international equities.  As for bonds, we continue to have a diversified allocation and think much of the anticipated interest rate hikes are factored into municipals, leverage loan funds, etc. Although a stock market correction (10% pullback) is not out of the question, we will use it, and normal day to day market volatility, to upgrade portfolios into higher quality companies that are attractively valued, with solid balance sheets and that are strong cash flow generators.

Read Newsletter

Newsletter Q3 2016

/in ,

As contrarians, we maintain an overweight to equities and will continue to allocate to weak areas within the equity market. We are using equity volatility to upgrade portfolios into either higher quality dividend-paying companies and stocks with a margin for safety. We continue to favor higher quality companies that are attractively valued, with solid balance sheets and that are strong cash flow generators.

Read Newsletter

Newsletter Q2 2016

/in ,

We remain vigilant and ever watchful but also hopeful. The market has climbed a wall of worry as it always does when it rallies. Will it get through the new highs this time or simply be another failed test? We don’t know; no one does. But we will keep ensuring that every position in our clients’ portfolios are carefully thought out as best we can and give our constituents the best chance for success in this anxious, low interest rate world without precedent.

Read Newsletter

Newsletter Q1 2016

/in ,

There were two very different eighths to the quarter that made up the first three months of 2016.

January started with a plunge, the worst start for U.S. stock markets in more than eight decades. Fears included: a hard landing/significant slowdown of the Chinese economy, the Bank of Japan’s pursuit of negative interest rate policy, domestic recession concerns, further Federal Reserve (“Fed”) interest rate hikes, a sudden and huge drop in world oil prices, global economic and geopolitical strife, and U.S. election jitters.

Read Newsletter

Market Update – January 8, 2016

/in

It has been a tough start to 2016 – the worst ever as headlines have reported. The selloff in this past week has been sharp and unrelenting. We are off almost 9% from the market’s recent highs. Even the most seasoned investors find these types of corrections upsetting and daunting.

The last time we sent an email like this one was late August when markets were down 10-15% in a short period of time. As in August, one of the catalysts for this correction has to do with China, whose young and illiquid stock market is being tested daily by rampant selling and reactionary government regulation. The potential slowdown of global economic growth and the recent “bomb” test by North Korea has added to investor angst.

In addition, the price of oil has undergone a shock- but not in the way many prognosticators had imagined. The price of oil has tumbled and remained lower for longer than ever expected. Surprises like this, though welcome for us as consumers, have other implications that are negative which we will discuss in our quarterly commentary forthcoming later this month. As of now, we have not retested the stock market lows of August and September, although it would not be unusual to do so.

As we have stated in the past, long term financial plans and thoughtful investment objectives shouldn’t be abandoned when markets behave irrationally. Markets are made up of millions of people and the range of their anxieties and passions rule in the short term. Those of us who stay the course and are disciplined, or those who buy into and through the fray, are often those most rewarded over the long term.

We appreciate your patience and resilience during this time and are available to talk, meet, or review your specific situation or that of someone close to you as needed.

We will get through this together.

Newsletter Q4 2015

/in ,

After several years of the Federal Reserve (“Fed”) maintaining a zero interest rate policy, it elected to raise the federal funds rate by 0.25% this past December- the first hike in a decade. The move was widely anticipated and telegraphed by the Fed. Conversations turned quickly toward anticipation and timing of the next raise. We think we will be having this conversation for months, if not years, to come. However, that doesn’t mean it has imminent bearing on our overall investment strategy decisions.

Read Newsletter

Newsletter Q3 2015

/in ,

Volatility returned to the equity markets in the third quarter, impacted by economic stress in China, the world’s second largest economy, and Greece, coupled with underwhelming corporate earnings reports and falling energy prices. Some parts of the economy that offered favorable news were housing and unemployment; others, including exports and wages, showed little in the way of positive movement. As a result, the Federal Open Market Committee once again declined to raise interest rates, noting that inflation still hadn’t reached the committee’s preferred target rate of 2.0%.

Read Newsletter

Newsletter Q2 2015

/in ,

This past quarter would appear to have been a bit of a yawner if judged solely on price change in the equity markets. While bonds experienced an uptick in yields, the results were negative total returns across the different bond sectors with long dated bonds down -7.6%. Other areas hit hard by higher rates were: REITs (-9.1%) and utility stocks (-10.7%). Strangely enough major domestic large cap, mid cap and small cap indices as well as international developed and emerging market indices all ended within a fairly tight range, with the best performance coming from the growth stock laden NASDAQ Composite +1.75%. The S&P 400 Index (mid-cap stocks) was the weakest, losing -1.06% in the period. Given the cacophony of handwringing and noise, an alien looking down on Earthlings from 265,000 feet would be justified in saying, “These humans need to relax!”

Read Newsletter

Newsletter Q1 2015

/in ,

The first quarter of 2015 was marked by volatility in the equity markets. There were more up and down moves of 1% than there were for the entire year 2014. One surprise that has continued to hamper and trouble the markets has been lower oil prices. After more than a 40% drop, oil has remained low but is starting to show the first signs of firming.

Read Newsletter

Newsletter Q4 2014

/in ,

Happy New Year! We start the year with good news. First, Pamela Weldon has been named Operations Manager in addition to her Senior CSA role (Client Service Administrator). Ashley Buffone has been promoted to Senior CSA. Client feedback has consistently reflected our very positive day-to-day interactions with these two professionals. We rely on their good judgment and diligence daily and are pleased with their continuing development; they are both a joy to work with, and they support each other so well. At our front desk and on the phone, you will now find Justine Carr has joined us as a CSA. Justine comes to us from State Street Bank where she was a Client Service Specialist and the point of contact for a large number of investment managers. Prior to joining State Street, Justine graduated from the University of Massachusetts – Dartmouth with a B.S. in Finance, minoring in International Business.

Read Newsletter