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Archive for July, 2010


Monday, July 26th, 2010

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The Decision Investments Team

2nd Quarter Update

Wednesday, July 14th, 2010
DOW -3.6% -10% -6.7%
S&P500 -5.6% -11.8% -7.8%
NASDAQ -6.6% -12% -7.39%

This quarter the S&P was down 11.86% after four good quarters in row.  The good news is that with the cash we raised in December and again in the beginning of May, accounts outperformed the market handily.  Also,  trailing 12 month performance is still strong and the first week of the current quarter has started out very good. Just a couple of days into earnings season, we have already seen some good earnings announcements. In a white paper that I wrote and has been posted on our website since April of ’09 entitled 5 Strategies for Wealth Recovery, I said:

“We do, however, believe that the stock market recovery will be long and arduous and that Dow 15,000 is a long, long ways away.  More realistically the major markets, after an initial “bounce back” from over-sold levels, will likely experience modest gains followed by a period of consolidation for the foreseeable future.  The ultimate goal will be to participate in the recovery to a greater extent than the decline and in doing so attempt to have investment accounts fully recover before the stock market has”

Well… a little over a year later, it looks as though things are playing out much as we anticipated and accounts are performing well.  The general consensus and one that I’m in agreement with is that the recovery is real. That being said however we do not feel that we are off to the races and several headwinds remain.  Notable concerns include the weak dollar/Washington money printing, continued weakness in Europe and a possible “double dip” in real estate”.  Above all other concerns are the questions of whether the US economy can continue to grow sans the billows of economic stimulus i.e. government intervention and when will corporations begin hiring?

In short, yes and not yet.  (more…)