|
News
FSC Named Broker/Dealer of the Year 2005
Letter to Our Clients & Friends Investment Advisor Magazine Press Release
Market Commentary
Update to 4th Quarter Commentary
In light of recent market declines, our research team drafted the following addendum to our quarterly commentary (Full Text)
Capital Thoughts 4th Quarter 2007
For the most part, with respect to the ranking of investment returns, the fourth quarter of 2007 was consistent with the rest of the year. In general, commodity prices moved sharply higher, as they did over the full year. Emerging-markets equities and currencies continued their advance (there is an embedded commodity play in some of these markets). Developed country foreign equities declined, a reverse after a strong advance earlier in the year—but they still outreturned the U.S. equity market, which was down across all styles in the fourth quarter. Value continued to underperform growth in the fourth quarter, this time on the downside—and was in the red on the year. Growth stocks delivered decent positive returns for the full year. Small-caps continued to lag large-caps and were also in the red for the year. REITs’ collapse intensified, as they dropped almost 13% in the fourth quarter alone. As recession fears increased, bonds performed well in the quarter and ended up with a solid 7% return for the year—ahead of the broad stock market. (Full Text)
Capital Thoughts 3rd Quarter 2006
Despite rising stock prices, valuations remain attractive thanks to a decent earnings environment. Why do stocks measure as being cheap right now? Investors seem to believe that a significant economic downturn is likely enough that they are pricing stocks based on a potentially big decline in earnings.
In our view, broad risk levels are higher than average right now, and we are no different from the rest of the market in that these risks impact our enthusiasm for stocks. But good valuations provide a cushion. Last month we reduced the smaller-cap exposure in our portfolios and moved the proceeds into larger-caps. Smaller-cap valuations are near the high end of their historical range relative to largercaps, and cyclical considerations also favor a lower smaller-cap weighting.
In addition to the underweighting to smaller-caps, we continue to own tactical positions in very short-term bonds of emerging market countries and commodity futures. (Full-Text)
2007 Market Outlook by Genworth
2006 Market Review by Genworth
|
Recent Mailings
Disclosures:
*There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment
**The investor should note that funds that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.
***Be advised that investments in real estate have various risks including possible lack of liquidity and devaluation based on adverse economic and regulatory changes. As a result, the values of real estate may fluctuate resulting in the value at sale being more or less than the original price paid.
****Foreign investments involve special risks including greater economic, political, and currency fluctuation risks, which may be even greater in emerging markets.
|
