201311.24
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Tactical Update

In today’s environment, our focus is on finding good companies and unique investing opportunities. We added one such company to the portfolio this week. The company has enviable revenue growth, strong operating margins, great returns on capital, growing cash flows and a P/E 20% below the broader market. The company also happens to have a…

201309.02
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Tactical Update

The stock market continues to show weakness. There is plenty to be concerned with: Global conflicts — Syria US foreign policy–alliances or lack there of G20 Summit this week in St. Petersburg, Russia Earnings growth Broad market equity outflows Debt ceiling and the pending debate…”We’re going to have a whale of a fight.” – House…

201306.16
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Tactical Update

As reported last week, we added some companies from our watch list.  The expectation is that these buys will eventually be offset with sales of companies which we don’t feel offer the upside potential. The market did not start the week strong.  It headed south and tested the 50 day technical line again; support did…

201306.09
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Tactical Update

As we’ve been reporting, the economic data has been showing weak performance.  But, the market hasn’t seemed to mind.  QE is in high gear.  It is supporting asset prices as the over-leveraged sectors of the economy heal themselves.  The banking and household sector received bailouts and a slow healing process puts them in a better…

201305.27
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Tactical Update

The Nikkei moved down over 7% in one day this week.  The S&P put out a potentially bearish technical sign, A Key Reversal.  The market experienced flash crashes toward the end of the week. Despite the out-sized monetary support, there is still plenty to find concerning. Global Opportunities: Rebalance the small Vix hedge.   We have recently added…

201304.21
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Tactical Update

Here is a list of things that concern us. Fed incentivized risk seeking  A recent surge in risk asset prices Continued global rebalancing Continued global deleveraging Bail-ins as much or more than bail-outs Continued excess leverage in the banking sector Technical indicators rolling over and flashing orange Tired fiscal houses Tired fundamentals Experimental Monetary Policy…

201304.14
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Tactical Update

This “recovery” is in its 4th year.  Unfortunately, we have yet to see robust growth in employment or incomes.  The recovery continues to be about low interest rates and abundant liquidity.  Cheap debt capital benefits equity owners.  Whether real or nominal, as revenues grow and the cost of capital becomes cheaper, the benefits flow to…