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January 8, 2016 New!
A Banquet of Consequences (Again)
“Mostly, things move gently in place, but occasionally move violently from place to place.” —Unknown
The past year will be easy to forget—not because it was bad, but because it was unremarkable. There was lots of activity, but not much changed...To view the entire article, click here»
Former Fed Official Fesses Up
Wow! Coming from a Fed insider, here are some amazingly candid remarks about the Fed’s handiwork.
In a January 5, 2016, interview, former head of the Dallas Federal Reserve, Richard Fisher, made an unusually candid admission. “What the Fed did, and I was part of that group, was we front-loaded a tremendous market rally starting in 2009….”
He went on to say, “Basically we had a tremendous rally, and I think there’s a great digestive period that’s likely to take place now and it may continue.” (emphasis added).
“The (stock market) values are very richly priced here. So, I could see significant downside. I could also see just a flat market for quite some time, again, digesting that enormous return the Fed engineered for almost six years.”
These comments are spot-on except for the part about a “flat market for quite some time.” Historically, overvalued markets (like the one we have today) have never corrected by staying “flat.”
Watch the interview at: https://www.youtube.com/watch?v=7nuzT3rchPU