Market Comment Q3 2013

MarketComment. The investment environment is clouded by uncertainty about what will happen when massive monetary stimulus is removed. One manifestation of this uncertainty was the recent sharp increase in bond yields. This appears to have been the result of signals that the Fed was preparing to reduce its $85 billion of monthly purchases of Treasury...

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Market Comment Q1 2013

MarketComment. IDES OF MARCH “Oh Lord, give me chastity, but do not give it yet.” So said Saint Augustine, and, with respect to fiscal austerity, so said the U.S. Congress. Just after the New Year, a deal was reached to roll back scheduled tax increases and maintain current levels of government spending. Thus, the fragile...

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Market Comment Q3 2012

MarketComment. THE THREE QUESTIONS Despite the world’s woes, stock markets have performed well so far this year. For the moment, a combination of strong corporate earnings, reasonable valuations and increased confidence has somewhat dispelled the fog of economic and political uncertainties. Can it endure? EARNINGS To form a view, let’s look at each of these...

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Market Comment Q2 2012

MarketComment. A MARKET CONUNDRUM? Despite the apparent success of a summit of Euro-zone leaders at the end of June, the financial pressure on Spain and Italy persists. Yields on the sovereign debt of these two countries are at or above 7%. If these yields persist, when existing debt is refinanced the debt service burden threatens...

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