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INTRODUCTION

“It was the best of times, it was the worst of times…”
– Charles Dickens

As a financial advisor, I regularly encounter a wide spectrum of market opinions among my clients. On any given day, I might speak with one client who is convinced a stock market crash is imminent, and another who believes we are underinvested in the transformative AI technologies reshaping our economy. While either perspective may prove correct, it is equally possible that both assessments are misguided.

The current market presents a dichotomy. For investors heavily weighted towards large U.S. growth companies, it is a period of remarkable prosperity. Conversely, those focused on international, value, or small-cap stocks might be forgiven for overlooking the fact that we are in the midst of a robust bull market. [Read more…] about Q2 2024 Investment Letter

INTRODUCTION

“Time in the market beats timing the market…”    
– Ken Fisher

As investors, we acknowledge the inherent complexity and unpredictability of financial markets. Humility and flexibility are virtues that serve us well. Even the most seasoned traders hope to be correct only around 60% of the time – a sobering reminder of the challenges we face.

Amidst this uncertainty, two strategies have successfully delivered for stock investors: diversification and patience. By diversifying our holdings across various companies and industries, we mitigate concentration risk and increase our chances of capturing opportunities wherever they may arise. Furthermore, embracing a long-term investment horizon has historically yielded favorable outcomes. [Read more…] about Q1 2024 Investment Letter

INTRODUCTION

“History provides a crucial insight regarding market crises: they are inevitable, painful and ultimately surmountable.”  – Shelby M.C. Davis

The stock market produced stellar returns in 2023!  Let’s raise our glasses in celebration of a great year. 

The market’s strong performance was not anticipated by many 12 months ago.  2023 was yet another reminder that investing is hard and it is best to avoid making emotional changes to your investment strategy during market corrections or periods of euphoria.  Those of us that waited out the volatility of the last two years have been handsomely rewarded. [Read more…] about Q4 2023 Investment Letter

INTRODUCTION

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” – Peter Lynch

We spend a lot of time in our investment letters discussing the negative implications of overreacting to recent market trends, sensational news stories, or partisan politics.  It does not mean that the story of the day does not matter, but that the market is forward looking and incredibly good at anticipating changing conditions.  By the time a story becomes newsworthy, it is typically too late to make a change.  Also, what seems critically important today can be quickly forgotten as a new narrative takes hold.  Time usually heals all wounds! [Read more…] about Q3 2023 Investment Letter

INTRODUCTION

“Pain trade is the tendency of markets to deliver the maximum amount of punishment to as many investors as possible from time to time.” -Adam Hayes, Investopedia

Coming into 2023, it seemed obvious that a recession was coming and there was no reason to take risk in the equity markets with short-term yields above 4% and heading higher.  If you were to take equity risk, it should definitely not be in the technology sector.  Investors became too complacent with this view. [Read more…] about Q2 2023 Investment Letter