This document discusses strategies for generating income from dividend stocks in uncertain markets. It provides details on Deschaine & Company's Equity Income Portfolio, which focuses on high-yield stocks with a history of growing dividends. The portfolio has outperformed the S&P 500 index since 2001 due to strong dividend income. Lower stock prices allow investors to accumulate more shares and build dividend income faster over the long run. Price volatility should be embraced as an opportunity rather than feared.
James Montier of GMO with a solid piece on the prospect of US equities. The question is what is going to be the trigger for the reversion. In retrospect we will know…
The document provides an economic and market outlook for April 2012. It notes that recent market performance did not match improving macroeconomic factors. It recommends that now is a good time to invest in equities and long-term debt given fairly priced markets. Cost-effective portfolio design with a low-cost core and specialized satellites is also advised. The global, domestic, and sector-specific economic outlooks suggest recovery is underway in India and developed markets while inflation remains high. The equity outlook is positive given signs of recovery and expectations of continued monetary easing.
Már Wolfgang Mixa analyzes the investment opportunities between Icelandic government bonds and stocks. He finds that historically, comparing bond yields to stock price-to-earnings ratios has indicated when bonds provide higher returns than stocks. Applying this methodology to Iceland in 2001, Mixa determines that government bonds were offering returns around 4 times higher than Icelandic stocks at 2.5%, making bonds the prudent first choice for Icelandic investments given their guaranteed income. However, anticipated interest rate cuts could make stocks more attractive if profits rise accordingly, though this remains uncertain compared to the secure returns from bonds.
‘Over the Horizon’ share market commentary – July 2014David Offer
- The Australian stock market was up 4.5% in July but has since fallen 1.1% as the corporate reporting season begins.
- Telstra reported a 14.6% rise in profits and announced an off-market share buyback. BHP Billiton is also expected to announce a spinoff and buyback when it reports.
- Low bond yields have left investors seeking higher yields in stocks, leading to gains in high-dividend sectors and hybrid securities. However, future returns on hybrids will be more modest once factoring in redemption values.
The document discusses how the stock market can sometimes be wrong in its valuation of companies, both in overvaluing and undervaluing stocks. It provides examples like Bre-X, Nortel, RIM, and the technology bubble of 1999 to show how the market can emotionally overvalue stocks. It also argues the market undervalued Bank of Montreal in 2009 and cites analysis showing companies in a typical Canadian equity portfolio generated much higher dividend growth than share price appreciation from 2007-2011, indicating potential undervaluation. The document advocates measuring investment returns over long periods rather than short term to allow for periods when the market may be wrong.
Indian equity markets performed strongly over the last month and year, with the Sensex and Nifty rising 4.9% and 5% respectively over the last month and 19.9% and 21.7% over the last year. Global equity markets also saw gains. Indian debt markets remained volatile, with yields on the 10-year G-sec falling 56 basis points over the last year. Gold and oil prices rose over the last year, but gains were modest over the last month. The rupee depreciated slightly against the dollar. Overall, most markets saw gains in the last year but momentum slowed in the last month.
Right Horizons Portfolio review December 2016 Right Horizons
The document provides an overview and analysis of the cartoon show "Mickey and Donald Show" from the 1980s and compares the cartoon characters to current real-world political figures. It notes that the cartoon show was a source of entertainment for children aged 5-10 at the time. It then compares the cartoon characters Mickey Mouse and Donald Duck to the "real" current political figures of Mickey and Donald, suggesting their personalities align similarly to the cartoon characters. The document speculates how the real-world version of the show might unfold and impact the world in the coming years.
1) The document discusses using a "building blocks" method to estimate future returns for both stocks and bonds. For stocks, the key blocks are earnings growth, dividend yields, and changes in valuation multiples. For bonds, the blocks are expected inflation, term premiums, and real yields.
2) The analysis estimates that stock returns over the next decade will be around 8.5% annually, lower than historical averages due to currently low dividend yields and limited room for further multiple expansion. Bond yields are expected to gradually rise into the 6% range over the next 10 years.
3) Investors are advised to remain vigilant with fixed income given the prospects for higher rates, and to be active in adjusting their
James Montier of GMO with a solid piece on the prospect of US equities. The question is what is going to be the trigger for the reversion. In retrospect we will know…
The document provides an economic and market outlook for April 2012. It notes that recent market performance did not match improving macroeconomic factors. It recommends that now is a good time to invest in equities and long-term debt given fairly priced markets. Cost-effective portfolio design with a low-cost core and specialized satellites is also advised. The global, domestic, and sector-specific economic outlooks suggest recovery is underway in India and developed markets while inflation remains high. The equity outlook is positive given signs of recovery and expectations of continued monetary easing.
Már Wolfgang Mixa analyzes the investment opportunities between Icelandic government bonds and stocks. He finds that historically, comparing bond yields to stock price-to-earnings ratios has indicated when bonds provide higher returns than stocks. Applying this methodology to Iceland in 2001, Mixa determines that government bonds were offering returns around 4 times higher than Icelandic stocks at 2.5%, making bonds the prudent first choice for Icelandic investments given their guaranteed income. However, anticipated interest rate cuts could make stocks more attractive if profits rise accordingly, though this remains uncertain compared to the secure returns from bonds.
‘Over the Horizon’ share market commentary – July 2014David Offer
- The Australian stock market was up 4.5% in July but has since fallen 1.1% as the corporate reporting season begins.
- Telstra reported a 14.6% rise in profits and announced an off-market share buyback. BHP Billiton is also expected to announce a spinoff and buyback when it reports.
- Low bond yields have left investors seeking higher yields in stocks, leading to gains in high-dividend sectors and hybrid securities. However, future returns on hybrids will be more modest once factoring in redemption values.
The document discusses how the stock market can sometimes be wrong in its valuation of companies, both in overvaluing and undervaluing stocks. It provides examples like Bre-X, Nortel, RIM, and the technology bubble of 1999 to show how the market can emotionally overvalue stocks. It also argues the market undervalued Bank of Montreal in 2009 and cites analysis showing companies in a typical Canadian equity portfolio generated much higher dividend growth than share price appreciation from 2007-2011, indicating potential undervaluation. The document advocates measuring investment returns over long periods rather than short term to allow for periods when the market may be wrong.
Indian equity markets performed strongly over the last month and year, with the Sensex and Nifty rising 4.9% and 5% respectively over the last month and 19.9% and 21.7% over the last year. Global equity markets also saw gains. Indian debt markets remained volatile, with yields on the 10-year G-sec falling 56 basis points over the last year. Gold and oil prices rose over the last year, but gains were modest over the last month. The rupee depreciated slightly against the dollar. Overall, most markets saw gains in the last year but momentum slowed in the last month.
Right Horizons Portfolio review December 2016 Right Horizons
The document provides an overview and analysis of the cartoon show "Mickey and Donald Show" from the 1980s and compares the cartoon characters to current real-world political figures. It notes that the cartoon show was a source of entertainment for children aged 5-10 at the time. It then compares the cartoon characters Mickey Mouse and Donald Duck to the "real" current political figures of Mickey and Donald, suggesting their personalities align similarly to the cartoon characters. The document speculates how the real-world version of the show might unfold and impact the world in the coming years.
1) The document discusses using a "building blocks" method to estimate future returns for both stocks and bonds. For stocks, the key blocks are earnings growth, dividend yields, and changes in valuation multiples. For bonds, the blocks are expected inflation, term premiums, and real yields.
2) The analysis estimates that stock returns over the next decade will be around 8.5% annually, lower than historical averages due to currently low dividend yields and limited room for further multiple expansion. Bond yields are expected to gradually rise into the 6% range over the next 10 years.
3) Investors are advised to remain vigilant with fixed income given the prospects for higher rates, and to be active in adjusting their
The document provides an economic and market update for August 2012, analyzing factors such as global economic conditions, domestic economic growth and inflation trends, performance of key equity and debt markets, and providing an outlook on various sectors and the overall market. It notes recent monetary policy actions by central banks and analyzes their likely impact, while also offering recommendations to investors on portfolio rebalancing and positioning across different asset classes.
This document provides information about Lord Abbett, an investment management firm, and discusses market volatility and long-term investing. It summarizes Lord Abbett's focus on stewardship and managing money for clients. It also shows that while markets fluctuate in the short-term, stocks have historically outperformed other asset classes over the long-term. The document urges investors to maintain a long-term focus despite short-term volatility.
1) The document discusses market volatility over the past 10 years and how it has caused investors to make emotional decisions that can adversely impact long-term investment performance.
2) It analyzes periods like the technology bubble of 1998-1999, the market crash from 2000-2002, and the rebound from 2003-2007.
3) It emphasizes that the market rarely moves in a straight line and that successful investing requires maintaining a long-term focus despite short-term fluctuations and emotional reactions.
New market highs and positive expected returnsMark Stern
New highs in stock market indices like the Dow Jones Industrial Average and S&P 500 do not indicate it's time to sell. Historically, markets hitting new highs has not predicted future returns. Expected stock returns are based on the prices paid and expected future cash flows, which are generally positive. While realized returns are uncertain, expected returns remain positive regardless of index levels or past performance. Over longer time horizons, the probability of positive stock returns increases. Therefore, investors should maintain a long-term perspective and not make changes based on short-term market movements.
The monthly newsletter by seeman fiintouch LLP December 2021Ashis Kumar Dey
The document provides an overview of promising investment themes and market indicators for 2022 based on a newsletter from Seeman Fiintouch LLP.
It identifies digitization as one of the most promising themes, highlighting the strong performance of digital companies that went public in 2021 like Zomato, Paytm, and Nykaa. It also notes technology/digital funds provide exposure to this theme through mutual funds.
Market indicators for December 2021 show the Sensex and Nifty indices were up for the year. The document also profiles a case study of an investor who reached his Rs. 1 crore goal through disciplined SIPs and now aims to double it to Rs. 2 crore. Finally, it outlines resolutions
The document provides an overview and analysis of the DIAS Conservative Income Portfolio, which aims to preserve capital and deliver over 5% annual income. It describes the portfolio's composition, including a 56% allocation to equities focused on high-dividend sectors and a 28% allocation to fixed income, primarily through short-term bond ETFs. It explains that the portfolio's performance should not be compared to stock market indexes due to its unique strategy and composition. The goal of the portfolio is to preserve capital with no losses to principal each year.
The document provides an economic and market outlook for September 2012. It discusses that September will be influential due to monetary policy announcements from the RBI, US Fed, and ECB. The RBI announcement is expected to have the least impact as no rate cut is anticipated. The ECB meeting may have a mildly positive impact on Indian equity markets. A QE3 announcement from the Fed could significantly boost risk asset prices including Indian equities. Domestically, growth is slowing across sectors but construction is growing strongly. Inflation is expected to remain around 7%, allowing for RBI rate cuts. The equity market outlook is cautiously positive with valuations attractive and the worst likely behind us.
This document discusses investing in mutual funds and provides an overview of Primerica, a financial services marketing organization. It notes that mutual fund investing entails some risk and shares may be worth more or less than the original investment. It then provides details on Primerica, including that it is the largest independent financial services marketing organization in North America, has over 5 million insured lives and 2 million client investment accounts, and clients have over $61 billion in asset values. The document aims to demonstrate why now is always a good time to invest using market cycles, proven investment fundamentals like dollar cost averaging and discipline, and investment solutions.
The document provides an economic update for key global markets as of February 28, 2013. It notes that equity markets in India, the US, and Japan saw gains over the last year, while commodities declined. Indian debt markets saw yields stabilize while the rupee depreciated against the dollar. Overall, the global economic environment remains cautiously optimistic but risks like the Italian election warrant monitoring.
This document discusses building a strong financial foundation. It emphasizes that building wealth responsibly through consistent saving and investment is better than get-rich-quick schemes. Some key aspects of a strong financial foundation discussed include paying yourself first by starting to save early, understanding how compound interest can grow your money over time, protecting your family with adequate life insurance, and creating an emergency fund to prepare for unexpected expenses. The overall message is that a patient, consistent approach to managing finances can help achieve financial security and goals.
Smart money january february_2013_singlesOliver Taylor
This document provides a summary of key announcements from the UK Chancellor's Autumn Statement in 2012. Some of the key points include:
- Economic growth forecasts were modest at around 2% per year for the next 5 years.
- Most working-age benefits will rise by 1% for the next 3 years. Lifetime pension relief allowance will fall from £1.5m to £1.25m and the annual allowance will be cut from £50,000 to £40,000 from 2014/15.
- The basic state pension and child benefit will rise by small amounts over the next few years. Income tax allowances will also rise modestly.
- The corporation tax rate will
New highs in the equity markets prompt the questions, "Is it a good time to invest?" and "What is a good strategy?" Read on to see what Cornerstone Wealth Management's Chief Investment Officer Alan Skrainka, CFA, has to say.
This document provides an analysis and investment recommendation on Big Lots from Canaccord Genuity. Some key points:
1) Canaccord believes improved product initiatives, including a broader assortment of consumables, will drive sales momentum and support same-store sales growth at Big Lots in fiscal year 2012.
2) Forecasts include double-digit bottom-line growth for Big Lots in fiscal year 2012 with EPS increasing to $3.50, and EPS growth at a five-year compound annual growth rate of 12%.
3) Shares of Big Lots currently trade at a discount to peer discount retailers but offer above-average growth potential, leading Canaccord to reiterate their "Buy" recommendation on
John Stokes provides a mid-year financial review with tips for taxpayers. He recommends reviewing finances, identifying needs, planning taxes, reviewing retirement savings and insurance. For life insurance needs, he outlines the "family needs approach" to estimate expenses families would face if the primary earner passed away and how much coverage would be required. Gold and silver can be held in a self-directed IRA if purchased from a trustee who can take physical possession.
The document provides an economic update and outlook for April 2013. It discusses political uncertainty in India with the withdrawal of support for the ruling coalition. While inflation remains elevated, wholesale prices and core inflation are softening. The RBI cut interest rates slightly but emphasized fiscal consolidation is needed to revive growth. Global conditions remain supportive for equities though Indian markets have underperformed due to domestic challenges around inflation and reforms.
The document provides an economic and market outlook update for May 2012. It notes that while short term triggers were confusing, the medium term outlook has predictably improved in India and globally. It expects the recent interest rate cut by the RBI to eventually reduce lending rates and boost growth. The document recommends a combination of strategic long term investing and tactical shifts between broad market and stock specific investments. It provides sector views, noting positives for banking, autos, and metals while remaining neutral on telecom, IT and cement.
- The US added 227,000 new jobs in February and 1.2 million jobs over the past six months, the highest six-month total since 2006. However, unemployment remains elevated and long-term unemployment is near record levels.
- Since the stock market low on March 9, 2009, the S&P 500 has risen over 100% while corporate revenues have barely increased due to widespread cost cutting, including large job cuts. Continued job growth may lead companies to add more staff and support revenue growth.
- US household net worth reached $58.5 trillion at the end of 2011, still $8.3 trillion below its 2007 peak, as the real estate and stock markets impact wealth. Households are
The document provides an economic and market update and outlook for November 2012. It discusses recent performance and trends in global equity markets, the Indian economy and key sectors. The overall outlook is cautiously positive. The Indian economy is seen to have bottomed out, and further monetary easing and fiscal policy actions are expected to revive growth going forward. Private sector banks are favored over public sector banks based on better Q2 results.
The document discusses the benefits of investing in dividend stocks, especially those that regularly increase their dividends. It presents three scenarios showing how a $1 million investment in a stock with a starting 5% dividend yield and 8% annual dividend growth would perform over 25 years under different stock price scenarios: flat prices, 5% annual price increases, and 5% annual price decreases. It finds that declining stock prices allow the investor to accumulate the most shares, resulting in the highest total returns of over 25% annual returns. This highlights how declining prices present an opportunity to accumulate stocks more cheaply when combined with growing dividends.
This document provides a summary of the Deschaine & Company investment portfolio for 2011. It thanks clients for a record year in 2011. It then discusses how the S&P 500 finished 2011 very close to where it started, highlighting the importance of dividends in providing a positive total return for the year. It argues that a focus on dividends is important for long-term positive equity returns.
This document summarizes the key tenets of Modern Portfolio Theory (MPT) and its influence on investing over the past 50 years. It discusses how MPT, developed in the 1950s, established that diversifying across different asset classes in indexed funds could achieve more consistent returns than investing in a single asset class. It also describes how MPT is based on assumptions that markets are efficient and that investors have long time horizons. While MPT became the standard for large institutional investors, the document argues that pushing it to individual investors instilled a false sense of certainty about long-term stock returns and risk.
The document provides an economic and market update for August 2012, analyzing factors such as global economic conditions, domestic economic growth and inflation trends, performance of key equity and debt markets, and providing an outlook on various sectors and the overall market. It notes recent monetary policy actions by central banks and analyzes their likely impact, while also offering recommendations to investors on portfolio rebalancing and positioning across different asset classes.
This document provides information about Lord Abbett, an investment management firm, and discusses market volatility and long-term investing. It summarizes Lord Abbett's focus on stewardship and managing money for clients. It also shows that while markets fluctuate in the short-term, stocks have historically outperformed other asset classes over the long-term. The document urges investors to maintain a long-term focus despite short-term volatility.
1) The document discusses market volatility over the past 10 years and how it has caused investors to make emotional decisions that can adversely impact long-term investment performance.
2) It analyzes periods like the technology bubble of 1998-1999, the market crash from 2000-2002, and the rebound from 2003-2007.
3) It emphasizes that the market rarely moves in a straight line and that successful investing requires maintaining a long-term focus despite short-term fluctuations and emotional reactions.
New market highs and positive expected returnsMark Stern
New highs in stock market indices like the Dow Jones Industrial Average and S&P 500 do not indicate it's time to sell. Historically, markets hitting new highs has not predicted future returns. Expected stock returns are based on the prices paid and expected future cash flows, which are generally positive. While realized returns are uncertain, expected returns remain positive regardless of index levels or past performance. Over longer time horizons, the probability of positive stock returns increases. Therefore, investors should maintain a long-term perspective and not make changes based on short-term market movements.
The monthly newsletter by seeman fiintouch LLP December 2021Ashis Kumar Dey
The document provides an overview of promising investment themes and market indicators for 2022 based on a newsletter from Seeman Fiintouch LLP.
It identifies digitization as one of the most promising themes, highlighting the strong performance of digital companies that went public in 2021 like Zomato, Paytm, and Nykaa. It also notes technology/digital funds provide exposure to this theme through mutual funds.
Market indicators for December 2021 show the Sensex and Nifty indices were up for the year. The document also profiles a case study of an investor who reached his Rs. 1 crore goal through disciplined SIPs and now aims to double it to Rs. 2 crore. Finally, it outlines resolutions
The document provides an overview and analysis of the DIAS Conservative Income Portfolio, which aims to preserve capital and deliver over 5% annual income. It describes the portfolio's composition, including a 56% allocation to equities focused on high-dividend sectors and a 28% allocation to fixed income, primarily through short-term bond ETFs. It explains that the portfolio's performance should not be compared to stock market indexes due to its unique strategy and composition. The goal of the portfolio is to preserve capital with no losses to principal each year.
The document provides an economic and market outlook for September 2012. It discusses that September will be influential due to monetary policy announcements from the RBI, US Fed, and ECB. The RBI announcement is expected to have the least impact as no rate cut is anticipated. The ECB meeting may have a mildly positive impact on Indian equity markets. A QE3 announcement from the Fed could significantly boost risk asset prices including Indian equities. Domestically, growth is slowing across sectors but construction is growing strongly. Inflation is expected to remain around 7%, allowing for RBI rate cuts. The equity market outlook is cautiously positive with valuations attractive and the worst likely behind us.
This document discusses investing in mutual funds and provides an overview of Primerica, a financial services marketing organization. It notes that mutual fund investing entails some risk and shares may be worth more or less than the original investment. It then provides details on Primerica, including that it is the largest independent financial services marketing organization in North America, has over 5 million insured lives and 2 million client investment accounts, and clients have over $61 billion in asset values. The document aims to demonstrate why now is always a good time to invest using market cycles, proven investment fundamentals like dollar cost averaging and discipline, and investment solutions.
The document provides an economic update for key global markets as of February 28, 2013. It notes that equity markets in India, the US, and Japan saw gains over the last year, while commodities declined. Indian debt markets saw yields stabilize while the rupee depreciated against the dollar. Overall, the global economic environment remains cautiously optimistic but risks like the Italian election warrant monitoring.
This document discusses building a strong financial foundation. It emphasizes that building wealth responsibly through consistent saving and investment is better than get-rich-quick schemes. Some key aspects of a strong financial foundation discussed include paying yourself first by starting to save early, understanding how compound interest can grow your money over time, protecting your family with adequate life insurance, and creating an emergency fund to prepare for unexpected expenses. The overall message is that a patient, consistent approach to managing finances can help achieve financial security and goals.
Smart money january february_2013_singlesOliver Taylor
This document provides a summary of key announcements from the UK Chancellor's Autumn Statement in 2012. Some of the key points include:
- Economic growth forecasts were modest at around 2% per year for the next 5 years.
- Most working-age benefits will rise by 1% for the next 3 years. Lifetime pension relief allowance will fall from £1.5m to £1.25m and the annual allowance will be cut from £50,000 to £40,000 from 2014/15.
- The basic state pension and child benefit will rise by small amounts over the next few years. Income tax allowances will also rise modestly.
- The corporation tax rate will
New highs in the equity markets prompt the questions, "Is it a good time to invest?" and "What is a good strategy?" Read on to see what Cornerstone Wealth Management's Chief Investment Officer Alan Skrainka, CFA, has to say.
This document provides an analysis and investment recommendation on Big Lots from Canaccord Genuity. Some key points:
1) Canaccord believes improved product initiatives, including a broader assortment of consumables, will drive sales momentum and support same-store sales growth at Big Lots in fiscal year 2012.
2) Forecasts include double-digit bottom-line growth for Big Lots in fiscal year 2012 with EPS increasing to $3.50, and EPS growth at a five-year compound annual growth rate of 12%.
3) Shares of Big Lots currently trade at a discount to peer discount retailers but offer above-average growth potential, leading Canaccord to reiterate their "Buy" recommendation on
John Stokes provides a mid-year financial review with tips for taxpayers. He recommends reviewing finances, identifying needs, planning taxes, reviewing retirement savings and insurance. For life insurance needs, he outlines the "family needs approach" to estimate expenses families would face if the primary earner passed away and how much coverage would be required. Gold and silver can be held in a self-directed IRA if purchased from a trustee who can take physical possession.
The document provides an economic update and outlook for April 2013. It discusses political uncertainty in India with the withdrawal of support for the ruling coalition. While inflation remains elevated, wholesale prices and core inflation are softening. The RBI cut interest rates slightly but emphasized fiscal consolidation is needed to revive growth. Global conditions remain supportive for equities though Indian markets have underperformed due to domestic challenges around inflation and reforms.
The document provides an economic and market outlook update for May 2012. It notes that while short term triggers were confusing, the medium term outlook has predictably improved in India and globally. It expects the recent interest rate cut by the RBI to eventually reduce lending rates and boost growth. The document recommends a combination of strategic long term investing and tactical shifts between broad market and stock specific investments. It provides sector views, noting positives for banking, autos, and metals while remaining neutral on telecom, IT and cement.
- The US added 227,000 new jobs in February and 1.2 million jobs over the past six months, the highest six-month total since 2006. However, unemployment remains elevated and long-term unemployment is near record levels.
- Since the stock market low on March 9, 2009, the S&P 500 has risen over 100% while corporate revenues have barely increased due to widespread cost cutting, including large job cuts. Continued job growth may lead companies to add more staff and support revenue growth.
- US household net worth reached $58.5 trillion at the end of 2011, still $8.3 trillion below its 2007 peak, as the real estate and stock markets impact wealth. Households are
The document provides an economic and market update and outlook for November 2012. It discusses recent performance and trends in global equity markets, the Indian economy and key sectors. The overall outlook is cautiously positive. The Indian economy is seen to have bottomed out, and further monetary easing and fiscal policy actions are expected to revive growth going forward. Private sector banks are favored over public sector banks based on better Q2 results.
The document discusses the benefits of investing in dividend stocks, especially those that regularly increase their dividends. It presents three scenarios showing how a $1 million investment in a stock with a starting 5% dividend yield and 8% annual dividend growth would perform over 25 years under different stock price scenarios: flat prices, 5% annual price increases, and 5% annual price decreases. It finds that declining stock prices allow the investor to accumulate the most shares, resulting in the highest total returns of over 25% annual returns. This highlights how declining prices present an opportunity to accumulate stocks more cheaply when combined with growing dividends.
This document provides a summary of the Deschaine & Company investment portfolio for 2011. It thanks clients for a record year in 2011. It then discusses how the S&P 500 finished 2011 very close to where it started, highlighting the importance of dividends in providing a positive total return for the year. It argues that a focus on dividends is important for long-term positive equity returns.
This document summarizes the key tenets of Modern Portfolio Theory (MPT) and its influence on investing over the past 50 years. It discusses how MPT, developed in the 1950s, established that diversifying across different asset classes in indexed funds could achieve more consistent returns than investing in a single asset class. It also describes how MPT is based on assumptions that markets are efficient and that investors have long time horizons. While MPT became the standard for large institutional investors, the document argues that pushing it to individual investors instilled a false sense of certainty about long-term stock returns and risk.
Short Version Making Money In A Lt Bear Marketmjdeschaine
1) The document discusses strategies for earning returns in a long-term bear market, using the 1966-1982 period as an example. It shows that focusing only on stocks that pay dividends can significantly boost returns compared to the S&P 500 as a whole.
2) Enhancing the strategy by selecting high-yield, dividend-growing stocks and timing reinvestment can potentially add further gains, with annual returns estimated at 16.1% for the 1966-1982 period.
3) Applying a similar strategy since 2000, the document claims annual returns of 9.5% compared to -2.9% for the S&P 500 over the same time.
This document provides an overview of the stock market rally in 2009 and Deschaine & Company's perspective on investing.
1) After bottoming out in March 2009, the stock market rallied significantly through the end of the year, with the Dow up 57% and the S&P 500 and Nasdaq up 63% and 75% respectively.
2) Deschaine & Company acknowledges stock market rallies but notes an important distinction between temporary "dead cat bounces" and sustained rallies driven by earnings growth and expanding price-to-earnings multiples.
3) The firm takes a contrarian approach to investing, focusing on generating income rather than short-term capital gains, in contrast to
This document provides an overview and analysis of economic events in 2008. It discusses the large declines in stock markets and other asset classes that year due to the unwinding of the debt bubble. It criticizes the new presidential administration's plans to stimulate the economy through large government spending programs, arguing this approach did not work during the Great Depression and will likely not work now. The document proposes eliminating all corporate and business income taxes as a better way to stimulate the economy with little cost to taxpayers. It claims this would lower business costs, generate cash flows, attract foreign capital, and make the U.S. the most competitive economy. However, it acknowledges this proposal will likely not be adopted.
The document provides an update on the Equity Income Portfolio strategy for year-end 2008. It discusses how 2008 was an extraordinarily difficult year for financial markets, with most major indexes experiencing declines of 30-40%. While the portfolio fared better than indexes with a decline of 18%, it was still the portfolio's first negative year since inception in 2000. The outlook provided expects a long and difficult economic downturn, with stock market valuations not bottoming until 2015-2020 when price-to-earnings ratios reach single digits. The update reviews the portfolio holdings and dividend payments received in 2008.
This document discusses the current economic challenges and provides suggestions for protecting assets during difficult financial times. It outlines six major obstacles slowing economic recovery, including accumulated debt, wealth destruction, declining incomes, the slow pace of government rescues, sinking confidence, and how to finance government programs. Specific concerns mentioned include declining asset prices, taxes, inflation, and unknown factors. The document recommends building cash reserves, selling bonds, considering inverse ETFs and gold funds, avoiding high-risk investments, and being wary of fraud. It offers to provide ongoing information and answers questions to help investors navigate the challenging environment.
This document is a newsletter from Deschaine & Company summarizing investment events from 2010. It identifies the top two stories of the year as the extension of the Bush tax cuts and the stock market reaching a two-year high in December. It then discusses other notable events throughout the year, including the BP oil spill, European debt crisis, Chilean miners rescue, and gold prices. The document concludes that the tax cuts and stock market high were linked, and that finding companies that consistently grow dividends over time is an effective investment strategy.
This document describes an equity income portfolio strategy managed by Deschaine & Company. The strategy aims to provide growing income and consistent total returns through high yield equity portfolios. It focuses on investing in quality companies that pay a consistent and growing dividend, with the goal of doubling clients' dividend income every five years through high dividend yields, growth, and reinvestment. The strategy also aims to provide principal protection in down markets.
The document is a market outlook article from the Cardinal Quarterly publication in October 2012. It discusses the state of global stock markets and economies. While negative sentiment exists, stock markets have risen throughout the year with only one correction. Most of Europe is in recession due to austerity measures, while the US and Canadian economies are recovering. The housing and auto sectors in North America are improving, contributing to job growth. The article expresses an optimistic view that another recession is unlikely in the near future for North America and that stocks remain a better investment than bonds. It predicts the stock market will end the year on a positive note once US election uncertainty is past.
This document discusses dividend investing strategies. It makes the following key points:
1) Dividend investing tends to outperform during periods of market volatility and below average returns, as dividend income provides downside protection.
2) Dividends have accounted for about one-third of the total return of the S&P 500 since the 1970s, so excluding dividend stocks puts investors at a disadvantage.
3) The best dividend strategies focus on high quality stocks with growing dividends, cash flows, and earnings, not just high yields, to identify opportunities with sustainable payouts.
- The Aquamarine Fund returned 27.8% in 2012, outperforming the S&P index which returned 16%. Over its lifetime, each $1 invested in the fund is now worth over $4.
- The fund manager prefers to compare performance to the S&P index rather than other indices to avoid "index shopping".
- In 2012, the fund received $3.47 million in new subscriptions and $2.69 million in redemptions, resulting in $0.78 million in net new capital, down from $3.9 million in 2011.
- A basket of Japanese "net-net" stocks purchased in 2011 was substantially exited by the end of 2012, returning approximately
The document summarizes the key points from a newsletter sent by FundsIndia to its investors. It discusses the strong performance of equity markets in January, encouraging investors to remain invested during downturns. It also mentions Fidelity mutual funds considering strategic options like a potential sale. Additionally, it announces FundsIndia is revamping its website user interface by the end of the month.
How to reduce portfolio risk through periodic re-balancing. The impact of dividends on total portfolio return. Thoughts on Social Security’s future.
Investment Styles: Large growth versus large value
Monthly newsletter by seeman distributors- December editionAshis Kumar Dey
This newsletter provides an overview of the investment outlook and recommends staying invested for long-term gains. It discusses that 2021 is expected to be a good year for businesses as the global economy recovers from the COVID crisis. It highlights sectors like real estate, metals, and logistics that are expected to perform well. It emphasizes the importance of managing emotions like fear and greed when investing and promotes the strategy of "invest right and sit tight" to build wealth over time. It shares the story of an investor who achieved his retirement goal through disciplined long-term investing in mutual funds despite market volatility.
The document is a newsletter from an investment advisory firm called Just Invest Online. It provides updates on the stock market and economy. It advises readers that if they are invested in good businesses through diversified equity funds, they should remain confident and hold during volatility. It also discusses how life expectancy has increased in India, meaning people need to save more for longer retirements. It profiles a woman who started a SIP in 2007 and saw her investment grow over 13 years to nearly 10 times her total contributions, demonstrating the power of long-term investing and remaining invested during downturns.
The document outlines 8 steps to financial success: 1) Set goals; 2) Understand risk; 3) Leverage the power of compound returns over time; 4) Invest early and often; 5) Increase savings when income increases; 6) Stay focused on long-term investing rather than trying to time the market; 7) Have adequate life insurance; 8) Use a professional wealth manager for their expertise, resources, and help achieving financial goals. It provides examples and formulas to illustrate concepts like compound returns and how much to save monthly to reach savings targets. The document encourages long-term investing for growth and using a wealth management firm for guidance.
This document contains a summary of an analysis of Procter & Gamble (P&G) as an investment. Key points include:
1) Historical data was used to calculate metrics like WACC, beta, ROIC, and FCF to evaluate P&G's performance and forecast future growth assumptions.
2) Revenue growth rates of 1.8% for 2014 and 4.1% over 5 years were predicted, based on slower historical growth and anticipated challenges for P&G to generate significant new sales.
3) Calculations of metrics like ROIC and assumptions about ratios were used to project financials and value P&G, finding the stock could be a moderate buy given its valuation compared to
The quarterly letter provides an update on portfolio performance and the manager's views. It notes that portfolio performance remains healthy but expectations for future returns should be realistic given high valuations. Specifically, the manager expects the index to return 10-12% annually over the next 5 years as valuations decline from monetary policy changes and normalization in private markets. The manager prefers positions in private banks, life insurance, and select industries and remains underweight consumer and IT given rich valuations.
Market Twitter June 2017 – Narnolia Securities Limitednarnoliasecurities
We are pleased to share with you the JUNE 2017 edition of the Market Twitter . Valuable Inputs by Sri Shailendra Kumar, CIO, Narnolia Securities Ltd & Sri Dhirendra Kumar, CEO , Value Research. Please share this valuable informative market twitter with your Investors. Visit https://www.narnolia.com/.
The investment managers at Global Financial Private Capital recently increased the cash allocations in the DIAS portfolios by selling stocks that had become overvalued. This tactical move to cash is not bearish but rather opportunistic, as the managers wait for quality stocks to become undervalued and enter a buying position. Having flexibility to increase cash allows the managers to limit downside risk and take advantage of profitable opportunities that may arise from market corrections.
June '22 was an action packed month....
Both SENSEX & NIFTY was highly volatile through out the month.
Domestic Institutional Investor's buying overpowered the selling
of FIIs and FPIs. Current resilience in the Equity Market is only on
the back of domestic institutional investors and also the average
retail investor.....read more about this new strength of Indian
Equity Market !
why FIIS Selling ?
Which funds/stocks did investors choose?
-Add Units in SIP Folio
-3 SMART MOVES to take in this Market
-Domestic Institutional Investor's buying overpowered the selling
of FIIs and FPIs
The Small Cap Focused Growth portfolio underperformed its benchmark in Q1 due to disappointing guidance from two large holdings, SPS Commerce and The Advisory Board, which fell 39% and 33% respectively. Additionally, investor sentiment turned negative towards the portfolio's focus on high secular growth stocks, favoring lower growth, lower volatility stocks. However, the portfolio manager remains confident that focusing on companies capable of sustained high growth will generate strong long-term returns, as short-term volatility in stock prices often diverges from long-term earnings potential.
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4 Benefits of Partnering with an OnlyFans Agency for Content Creators.pdfonlyfansmanagedau
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Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
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1st Qrt 2010 8 Page Final Final
1. Helping You Navigate in an Uncertain Investment World
1st Quarter 2010
Volume 11 Issue 1
Inside this issue: High-Yield, Dividend Growth Investing—The Details
Front Seat-When it comes to
2 Sweating the details is how you win at investing in a long-term bear market.
Investing-it’s all about the Price
How We Win the Game
EIP Annual Returns
Now for something com-
4
5 O UR YEAR END 2009 ISSUE OF VIEWPOINT
generated a number of requests from readers
for details of how our EQUITY INCOME portfo-
lio is expected to make money over the next decade.
dividend income is available to provide ample income
for a comfortable retirement.
Veteran VIEWPOINT readers also know there’s
one other major reason for our excessive enthusiasm
6 This interest was probably driven, at least in part, by for dividends, and growing dividends at that, and that’s
pletely different the fact that we’ve added a number of new readers in the current economic and stock market environment.
the last year. For several reasons. Many of you folks As we’ve droned on constantly in these pages since
Doing Business With Us 6 have been kindly forwarding or sharing your VIEW- 2000, we believe future capital gains from stocks will
POINT with others for their reading enjoyment and for be difficult to come by as the stock market continues to
EIP High and Low Historical that we thank you. We’re always happy to have more unwind the valuation excesses of the 1982 to 2000 bull
7 readers. We’ve also obviously added a number of new market. And so far in the new millennium that has
Dividend Yields
clients since Matt and Jason joined the firm and for certainly been exactly the case. Consider that from
Budget Deficit Bomb Shell 8 that we are really thankful. And lastly, we’ve made a January 1, 2001, through December 31, 2009, the S&P
concerted effort to spread the word about VIEWPOINT, 500 index posted a negative return of 13.1% from capi-
figuring, if we’re going to take the time to write and tal and a 16.0% positive return from dividends. That a
publish this quarterly diatribe, we might just as well total return of 2.9% for the S&P over the last nine
promote it for the betterment of mankind. years, which works out to a whopping 0.3% annualized
In addition to discussing our investment strategy total return for the “stock market.” We expect similar
and process here each quarter, we direct inquires for results for the stock market to continue.
Deschaine & Company, L.L.C. additional information on our strategy, our investment Compare those results to our cumulative 9.6%
A REGISTERED INVESTMENT ADVISOR
philosophy and security selection process to our newly annual EIP results over the same nine year period. The
revised website at deschaineandcompany.com. As be- annual returns for the EIP since 2001 are shown at the
World Headquarters fore, the site includes all past issues of VIEWPOINT, top of page 5, along with Vanguard’s S&P 500 Index
128 South Fairway Drive along with a new section under “About Us,” entitled fund. We use the Vanguard fund in this instance be-
Belleville, Illinois 62223 “How We Do It,” which briefly describes a few of the cause it’s a real alternative to investing in our EIP, as
Phone: (618) 397-1002 more pertinent steps in our security selection process. apposed to the S&P 500 index.
mark@deschaineandcompany.com We encourage you to check out our new web site and The returns are broken down into their income
marnie@deschaineandcompany.com give us your unvarnished opinion. We’re committed to and capital components. When we launched the EIP,
making it a useful tool in providing information about our modest goals were to earn the portfolio’s expected
Maryville Office our investment methodology and process and any dividend yield, which initially was about 5.5%, while
Jason Loyd feedback will be most helpful in the endeavor. trying to protect the portfolio from any significant
(618) 288-2200 Back to the questions about our magic formula capital losses in the event the stock market took a “post
jason@deschaineandcompany.com for making money with the EQUITY INCOME Portfolio -bubble bath.” We did this primarily by holding extra
(EIP) strategy. As you know, our EIP focuses on creat- amounts of cash. Our average cash position since in-
Highland Office ing a diversified portfolio of high-yield stocks that have ception has been about 18%. At the time, we certainly
Matt Powers a history of growing their dividend. The primary ob- had no expectations that capital returns would be posi-
(618) 654-6262 jective of the portfolio is to generate a growing stream tive. Had we known, we certainly would’ve been more
matt@deschaineandcompany.com of dividend (and some modest amount of interest) income aggressive in investing cash and reinvesting dividends
We’re on the Web at: that initially we can deploy to buy more shares of divi- to take advantage of a rising stock market in 2003 to
dend stocks with the overall objective of building even 2007 and again last year. Instead, our large cash hold-
deschaineandcompany.com
more future income. Ultimately, the growing stream of
(Continued on page 4)
2. Page 2 1st Quarter 2010 Viewpoint
VIEW FROM THE FRONT SEAT by Mark J. Deschaine
When it Comes to Investing, It’s all About the Price
I NVESTORS ARE NOTORIOUS for undermining their own in-
vesting efforts by buying high and selling low. This is par-
ticularly true when it comes to buying and selling stocks, but
Not So When it comes to Pricing Stocks?
Just the opposite often occurs when it comes
to the stock market. When stock prices drop,
the maxim applies to just about any asset. There’s simply no investors see (or is it feel) the price drop and
argument about that. The historical evidence and countless it’s obvious from their usual reaction that
studies have shown conclusively and repeatedly that investors they don’t have a sense of what the business underlying the
are their own worst enemy when it comes to buying and selling stock is worth. If they did they probably wouldn’t sell the stock.
stocks, stock mutual funds or, as I said, just about any financial Typically, about all most investors know about the stocks
asset. The fact that most folks aren’t rich after 20 or 30 years of they own is the market price (notice I didn’t say market “value,”)
investing is testament to the fact that most investors are inca- has dropped and that tends to cause them to panic. As a result,
pable of emotionally handling the stock market’s often violent they usually do the only thing they feel they can do to prevent
volatility to their own wealth creating detriment. any further erosion of their portfolio, they sell. Compounding
What’s interesting about this quandary is that everyone their mistake, they often sell well after most of the price decline
understands the concept of a bargain and how to take advan- has already occurred; turning what is often a temporary market
tage of one in just about every other aspect of their financial price hiccup into a permanent capital loss.
affairs--except, it seems, when it comes to investing. As an ex- Back to my Corvette analogy,(2) if a hypothetical stock mar-
ample, if I were to put a brand new Corvette ZR1 that I just ket for Corvettes dropped the price of my Corvette to $90,000
won in a raffle on my front lawn and put a “For Sale” sign on it or even $50,000 and I know the car’s worth over $120,000 (and
for say, $100,000, I might get interest from a few knowledge- I didn’t need the cash really bad) then I’d be an idiot to sell the car
able Corvette aficionados to grasp that my asking price is rela- at either price because I know it’s really worth a lot more than
tively cheap compared to $120,000 or more a dealer might the prevailing price. So I’m not inclined to sell.
charge for a similarly equipped car. Because of the low initial
asking price, I’m sure to get interest in the car.(1)
Just for the sake of the discussion, let’s say I don’t get any All that Matters: Dividends and Prices
takers at my initial absurd $100,000 asking price so I lower my So what’s the point of this talk about the price of a hypothetical
price to say $90,000. At the new lower price, I’m sure to get Corvette? There are two actually. One, is the role dividends
play in owing stocks. When one of our stocks gets clobbered—
more interest from a growing pool of Corvette enthusiasts as
and they all do at one time or another—the dividend acts to
well as possibly some offers from a few regular folks simply
reassure us of the stock’s value. Because there is a tangible dol-
interested in buying a cool car at a more amenable price. The
lar value in the dividend to us, we’re less likely to panic and sell
point is, the new lower price is certainly going to attract more
a good stock after a price drop as long as we’re collecting a
potential buyers because of the growing disparity between my
growing dividend every quarter. We figure as long as the com-
asking price and the actual market value of the car. This, of
pany can continue to pay the dividend, we’ll own the stock re-
course, is the way pricing in an economic transaction is sup-
gardless of how badly the stock market beats up the stock price.
posed to work. The lower the asking price, the more interested po-
In fact, as we note endlessly in these pages, we’re inclined to
tential buyers become and the more potential buyers I attract.
take advantage of any unusually steep price drop to try to cap-
At this point, let’s pretend I’m suddenly desperate for cash
ture uncommonly high yields by adding to our position—again
and decide that $50,000 is what I need and I need it like yester-
as long as we believe the dividend is secure.
day. So I lower the Corvette’s asking price once again (remember
this is a loaded, top of the line 2010 ZR1, which retails for anywhere
between $120,000 and $130,000 depending on options etc.) Offering Now, About Prices
the car at the inconceivably low price of $50,000, I suspect will As for prices, one way to deal with the ever present price vola-
garner lots of buying interest and I’ll have the car sold about 10 tility is to ask yourself this question: “Over the next ten years,
minutes after I put the new sign out. are you a net buyer or are you a net seller of assets?” In other
The moral to this story is that the pool of potential buyers words, are you looking to buy as many shares of stocks as you
for my hypothetical Corvette grows each time I lower my ask- can over the next decade or are you more likely to be a net-
ing price because knowledgeable potential buyers understand seller of stocks to fund your retirement needs? Given that the
the relationship between the value of the car (the asset) and the life expectancy of the average American is now well into their
asking price relative to the “value” they’d get for their money. 80s, most of us should probably consider ourselves net buyers.
Each successive lower asking price attracts more potential buy- If you’re going to be buying stocks over the next ten years
ers, rather than scare them away, because buyers are able to the next question you should ask yourself is: “Do you want
make rational price verses value tradeoffs when comparing the stock prices to go up, stay flat, or go down?” Now, ask yourself
value of the car to my asking price. the question in the context of my Corvette price analogy.
(Continued on page 3)
1) This is before eBay, don’t you know. 2) Hey, I’ve got so much invested in the “Corvette analogy” I’ve got to play it out to its logical conclusion.
4. Page 4 1st Quarter 2010 Viewpoint
HOW WE WIN THE STOCK MARKET GAME Over The Next Decade
D&C EIP S&P 500
Our Strategy Compared to the S&P 500 Index As of 2/28/2010 Strategy Index
1) Own high yield stocks: Current Dividend Yield 6.20% 1.80%
9-Year Annualized
2) With a history of dividend growth: Dividend Growth Rate (1)
15.04% 1.96%
Expected Dividend Yield over
3) Capture higher yields as stock prices decline: the next decade (2)
6.20% — 10.00% 2.10% — 6.00%
4) Buy high yield stocks when their current
Take advantage of price volatility to capture exceptional dividend yields.
yield > their 5-year average yield:
5) Match the S&P in capital returns: Zero Returns from Capital 0.0% 0.0%
6) Reinvest all dividend and interest income in
Maximize the power of money to compound.
a timely manner to build future income:
1) The history of the Equity Income Portfolio Strategy. *2) As stock prices decline over the next decade as we anticipate, we expect yields on the S&P to rise to 6.0% or better.
As that happens we expect the dividend yield on our universe of stocks to rise from 6.2% to 10.0% or better over the same period locking in annual dividend yields of 10% or
better on an all stock portfolio.
(Continued from page 1) of the EIP strategy for their potential contribu- discuss in a moment.
tion to the portfolio’s total return and then as- 3) Capture higher yields as prices decline: As
ings was not warranted by our equity returns to sess the probability of actually earning the re- we discussed at length in last quarter, we believe
the detriment of the EIP’s total returns. But turns we expect over the coming decade. the current bear market cycle remains firmly
anticipating short-term moves in the stock mar- 1) Own high yield stocks: This, of course, is intact and we expect stock prices to worm their
ket have never been our forte, (nor anyone else’s the biggie, contributing 6% (or better) annually to way lower (and conversely, dividend yields to wiggle
that we know of, for the matter) and such moves our total and accounting for more than 60% of their way higher) over the next ten years. That’s
are only blatantly obvious with the exacting our total expected return over the next ten the bad news. The good news is this will allow
focus of 20/20 hindsight. At the same time, we years. At today’s prices, we can construct a port- us to capture higher dividend yields until yields
should point out that cash returns over the last folio of income stocks with a current dividend for the market reach or exceed 6%. Since our EI
nine years have handily beat the S&P 500 so, all yield of about 6.0%. (The portfolio shown on page portfolio has a current yield that’s three times
in all, cash was not such a bad place to be. 7.) We believe the likelihood of actually earning the market to begin with, (6.2% compared to 1.8%
Then again, in our defense, at least our more than 6% from the dividend yield over the for the S&P 500) we expect to add stocks to the
“error” was one of omission and that about all next ten years is excellent. Why? Because the portfolio with dividend yields of 7, 8, 9, and yes
holding too much cash really did was shave a majority of the stocks in our portfolio will not even 10% by the time the market’s dividend
few percentage points off the EIP’s otherwise only pay us their current dividend, but they’re yield reaches 6%. How can we be so certain?
good performance—as opposed to actually in- likely to raise their dividends over the next ten Because that’s been the case at the bottom of
curring real capital losses. Not that we’re happy years at close to double digit annual rates. That every previous bear market in history. We see
leaving extra returns on the table, mind you. being the case, we’re about as certain as we can no reason this time will be any different.
Being the greedy capitalists that we are, it pains be that we’ll earn at least 6% from the dividend 4) Be disciplined when buying. Using our
us too because we made the very same mistakes component over the next ten years. tried an true buying criteria we expect to add an
with our own personal portfolios. Since we man- 2) History of dividend growth: After dividend additional 1% to our annual returns over time.
age our own money the same as we do for cli- yield, this is the most important variable to our 5) Match the S&P in capital returns: Had we
ents using the EIP strategy we feel the error of ultimate success. We expect to add an additional known when we launched the EIP strategy in
our ways directly and right along with you. We 2.5% in annual return from dividend increases December 2000, that capital returns for the
like to think our personal commitment to the over the next decade. To achieve this objective, stock market the coming decade would, in fact,
EIP strategy buys us some street “cred” with we estimate the EI portfolio will need to raise its be flat, that would’ve been just fine with us. At
clients and has to count for something, right?(5) dividend at least 7.5% a year. We’re comfortable the time, we were anticipating a much worse
The table at the top of this page is a break- the EIP can achieve that level of annual dividend possible outcome for capital returns than break-
down of the EIP’s 10-year return objectives. As growth, particularly when we consider that even—and through the market bottom in 2003,
you can see, there’s more to the EIP strategy since inception the portfolio’s dividends have it certainly looked that way. As we now know,
than simply buying high-yield stocks and wait- grown more than 15% a year. If anything, our capital returns have been almost exactly flat
ing for the mailman to drop off our quarterly expectations here are somewhat conservative
dividend checks. Let’s examine each component regarding dividend growth for reasons we’ll (Continued on page 5)
5) At least we hope it does. Then again, maybe not.
5. Deschaine & Company, L.L.C. Page 5
OUR EQUITY INCOME Portfolio: Gross Annual by Capital and Income Returns 2000-2009
EQUITY INCOME PORTFOLIO 2009 2008 2007 2006 2005 2004 2003 2002 2001 Annualized
Capital Return 10.5 - 32.4 - 6.1 16.3 - 1.2 20.2 29.1 1.5 14.6 3.4%
Income Return 6.2 7.5 6.4 6.0 5.8 4.6 5.2 6.5 7.1 6.1%
Equity “Only” Total Return* 18.2 - 23.7 0.3 22.3 4.6 24.8 34.3 8.0 21.7 9.6%
EIP Total Portfolio Return** 10.2 - 17.5 1.1 19.6 3.9 19.7 19.8 7.2 16.3 8.1%
VANGUARD S&P 500 INDEX FUND 2009 2008 2007 2006 2005 2004 2003 2002 2001 Annualized
Capital Return 23.6 - 38.5 3.5 13.6 2.9 8.7 26.5 - 23.4 - 13.1 - 2.6%
Income Return 2.9 1.5 1.9 2.0 1.8 2.0 2.0 1.2 1.1 1.9%
Total Vanguard S&P Index Return 26.5 - 37.0 5.4 15.6 4.7 10.7 28.5 - 22.2 - 12.0 - 0.6%
*Represents Equity “Only” returns for periods shown. ** Equity Income Total Return included cash holdings.
(Continued from page 4) higher stock prices. Why do we think that? Be- burger-helper in retirement.
since 2000, with a couple of significant dips and cause it eventually always does.
rebounds along the way. While the overall mar- Here’s a couple of additional obvious, but What if Dividends Don’t Grow?
ket’s capital returns are flat, the EIP has provided never the less, powerful reminders on the subject Given our less then optimistic outlook for the
annual capital returns of 3.4% over its first nine of growing your money: economy, how likely are companies to raise their
years. For that we are both grateful and frankly Keep fees, commissions and taxes low: As dividends in the coming decade? That’s a reason-
a little flabbergasted. Ben Franklin said, “A penny saved, is a penny able question to ask, so we’ll make a reasonable
6) Dividend Reinvestment: Through the earned.” That timeless advice applies in these effort to answer it. Our snapshot answer—pretty
process of reinvesting dividends, we expect to tough economic times more than ever. By watch- likely, actually. Even though we expect the econ-
add an extra .50% to 1.0% to the bottom line ing expenses and minimizing portfolio turnover, omy to make a slow and laborious recovery by
return (a half of a percent a year in additional an- we expect to keep total portfolio expenses below historical standards, significantly underperform-
nual return) from timing dividend re-investments one and a half percent annually (excluding taxes). ing past recoveries in the process, we do expect
when the market swoons and when individual Boost compounding by reinvesting as much better than average growth in dividend payouts
stocks are priced at particularly attractive yields. investment income as possible: For clients that and consistent increases across the board for
With discipline, we think this goal could also don’t need income and are able to re-invest all of several reasons.
prove to be conservative. the portfolio’s investment income you can expect First, we have to concede, most companies
will earn an additional one to two percent annu- have done a pretty good job of lowering their
Looking at Our Ten Year Outlook ally from the miracle of compounding by rein- overhead and operating expenses and, as a result,
Looking ahead over the next ten years, our out- vesting all your dividend income. How much their profits and discretionary cash flows are up
look for capital returns for the stock market re- additional return depends on how much of the significantly in the last year or so (partly justifying
mains negative. We alert readers that they income you’re able to sock away and re-invest. the stock market’s recent performance). Corporate
should remain cautious regarding stock prices in The more the better. managers did a good job of getting ahead of their
general and be prepared to see significant price Additional Savings: Socking extra money cost curve entering the economic downturn. The
volatility. Basically, we’re anticipating a replay of away each year, even in modest amounts, can silver lining in the painful decision to lay off more
the last ten years. have a huge impact on your long-term returns. than six million workers is that most of the cost
So what’s our plan to deal with all this un- During these tough times, scrimping and saving savings go directly to the bottom line and show
certainty? Our plan, of course, is to do what every extra dollar can help enormously, particu- up almost immediately in higher discretionary
we’ve been doing since 2000, which is to manage larly when you keep in mind that the extra cash flows. So while the top line for many indus-
client equity portfolios to maximize compound- money can be used to capture nice dividend tries are not growing and we don’t expected
ing through stocks with a high dividend yield, yields in our EIP over the next decade. Our sug- them to grow much over the next few years, we
exceptional dividend growth, and do all we can gestion for the next decade is simple: save, save, do expect cash flows to continue to improve with
to take advantage of the many dips to reinvest and save some more. companies generating extra free cash that’ll be
dividends. And like the last ten years, we’ll let the There you have it. A detailed account of our available to boost dividends.
capital return chips fall where they may. At the plan to make money in a declining stock market Second, through the cost cutting process,
same time however, we have reason to believe (or, if you prefer, a rising dividend yield market) over and because there are few viable investment op-
that if the EI portfolio’s dividends do, in fact, the next ten years. When it comes to investing, portunities for most companies to invest their
grow 10% a year at some point the stock market paying meticulous attention to the details can
will recognize that and reward our stocks with mean the difference between eating steak or ham- (Continued on page 6)
6. Page 6 1st Quarter 2010 Viewpoint
(Continued from page 5) dends as companies generate higher revenues fact that Obama-care, at 2,407 pages and count-
excess cash in the slow economy, companies have and higher cash flows giving a boost to the pros- ing, was one of the largest bills ever shuttled
accumulated record amounts of cash on their pects for future dividend payments. through Congress guarantees that the unin-
balance sheets. Managers have done a good job tended consequences, whatever they eventually
of hoarding cash in these tough times which is Now for Something Completely Different turn out to be, will be huge and will likely come
exactly the right thing to do. Among the stats to Creating a 20th Century Health Care System from straight out of left field.
support this argument is the percentage of corpo- Now that the monumental monstrosity known as Yet, of all the possible negative ramifica-
rate cash to total assets for the non-financial S&P “Obama-care” has been shoved down our collec- tions of this hideous bill that we could conjure up,
500. The ratio has surged in the past 12 months tive throats, we’d be remiss if we didn’t devote at probably the most devastating is the fact that
to a 35-year high of 9.7%. The increase is broad- least a paragraph or two of commentary on its essentially what Obama and the Democrats in
based and includes all industry sectors with the passage and some of the possible economic and Congress have done is permanently relegate our
exception, as noted of the financial sector. social implications. After much thought, and deep health care system to the inefficiencies of govern-
So far the extra cash hasn’t caused manag- political and economic analysis, about all we can ment bureaucrats and in the process effectively
ers to do any of the foolish things managers tend say for sure is this; we have no idea what the kill any possibilities for future advancement in
to do when they find themselves with too much impact this massive meddling into one sixth of health care treatments. And at a time when we
cash: like buy back stock at over-inflated prices the U.S. economy will have on the availability, believe we’re on the verge of many extraordinary
like they did in 2006 and 2007, make ill- quality or cost of health care or the health insur- new discoveries in health sciences. It’s a shame,
conceived and over-priced acquisition, invest in ance that pays for most of it. And don’t kid your- but we’re likely to never know what amazing
new businesses or projects that do not generate a self, no one else does either. There’s not a person new discoveries and cures this ill-advised bill
high enough internal rate of return to justify the on the planet who can tell you, with any degree forever derailed, stifled, killed.
investment. Given our outlook for the economy, of certainty what the eventual effect this piece of If you’re a supporter of the bill, you’d point
we don’t expect companies to have any compel- dreadful legislation will have on the health care to its benefits: poor adults will get Medicaid; low-
ling reasons to expand their businesses, so we see system, our economy overall, or society at large. income families will get federal subsidies to buy
above average growth in dividend payouts as one But we do know this: it’s not likely to be good. insurance; small businesses may get tax credits;
way to placate investors during a period of un- How do we know that? Oh, a couple of thousand young adults will get to stay on their parent’s
derperforming stock prices. years of government meddling tells us so. health plan until they’re 26, seniors will get addi-
For all of the aforementioned reasons, we What we can also say, with a high degree of tional prescription drug coverage; and people
expect dividend payments to rebound and grow certainty is that the ever-present “unintended with pre-existing medical conditions can’t be
at acceptable annual rates over the next decade. If consequences” of government meddling go up denied or dropped from coverage.
the economy grows faster than we now expect, exponentially with each additional line of verbi-
that’s only likely to improve the outlook for divi- age in any legislation. That being the case, the (Continued on page 8)
portfolios you are free to go about your daily life no longer having to sweat
Doing Business With Us the day to day management and monitoring of your investment portfolio.
Simply Put Our fee is a percentage of the market value of your account and not
By Matt Powers commission driven so we’re not pushed to get you to buy or sell securities
Vice President & Portfolio Manager as with a broker. So there’s no incentive on our part to do or recommend
any action that’s not in your best interest to grow your account or that is
J ASON AND I'VE HAD THE OPPORTUNITY TO work on several differ- expected to meet your long-term investment objectives. The benefit of a
ent sides of the investment industry including a large wire-house, fee based arrangement is that if we succeed at growing your portfolio, both
regional brokerage firm, independent investment firm, and our cur- you and our firm benefit. Of course, the flip side is also true that if our per-
rent home: Deschaine & Company. As you know Deschaine & Company was formance isn’t good, our fee adjusts accordingly. But either way, the firm and
originally founded as a Registered Investment Advisor (RIA) and operates you are on the same side of the issue. We’re not compensated in any other
in that same manner today. way, so the only way we’re able to make more as an advisor is if the client’s
What is a Registered Investment Advisor and why should you hire one portfolio value grows. It’s as simple and straightforward and as mutually
to manage your money? Those are two of the more common questions we beneficial as it could possibly be.
hear when talking to prospective clients. Now that you've gained a better understanding of how an RIA oper-
Let’s start by defining what exactly is a Registered Investment Advi- ates, why should you choose our firm? Well, that’s easy. We have a well
sor. In many ways, an RIA is the equivalent of an you managing your own defined investment process which has a track record of documented supe-
account (Schwab, TD Ameritrade, Scottrade, etc.), and then you come to rior historical performance. Our firm delivers an institutional style (pension
realize that it takes a great deal of time and significant effort to research funds, Foundations, etc.) process of money management to individual inves-
and successfully oversee a growing pool of investments, so you decide it’s tors. Furthermore, clients meet with the people directly responsible for
probably better to look to someone who has the time do it right. daily management of their accounts—the portfolio managers.
In a very real sense hiring an RIA is really nothing more than giving Last, all client portfolios are managed by our team of portfolio manag-
Deschaine & Company the authority over your accounts allowing us to man- ers to ensure there’s always someone available to meet with to discuss your
age your investments for you. We set up your account at a broker/ account. Just one more reason to engage a registered investment advisor,
custodian, like the ones listed above. Once we assume management of your oh and Deschaine & Company at that. MTP
7. Year End 2009 Viewpoint Page 7
EQUITY INCOME Portfolio 5, 10, & 20 Year End High and Low Dividend Yields EQUITY INCOME
Company Name Ticker Price $ Dividend Div Yield 5-Yr High 5-Yr Low 10-Yr High 10-Yr Low 20-Yr High 20-Yr Low Portfolio
Abbott Laboratories ABT 52.91 1.76 3.33% 2.89% 2.26% 2.89% 1.47% 2.89% 1.20%
1st Quarter 2010 Update
Alliance Bernstein Global High Inc AWF 14.45 1.20 8.30% 18.70% 7.11% 18.70% 7.11% 24.98% 4.73%
T
Altria Group Inc MO 20.93 1.40 6.69% 5.63% 3.87% 6.02% 3.87% 8.00% 1.87%
Aqua America Inc WTR 18.00 0.58 3.22% 3.14% 1.46% 3.14% 1.46% 8.27% 1.46%
HE EQUITY INCOME
Arthur J Gallagher & Co. AJG 25.40 1.28 5.04% 5.69% 3.53% 5.69% 1.40% 5.69% 1.40%
Portfolio current holdings
AT&T Inc. T 26.38 1.68 6.37% 5.85% 3.42% 5.85% 2.10% 5.85% 0.85% as of March 31, 2010 are shown
B&G Foods, Inc. Class A BGS 10.18 0.68 6.68% 15.70% 6.25% 15.70% 6.25% 15.70% 6.25% on the table to the left. Also
Black Hills Corporation BKH 31.30 1.44 4.60% 5.33% 3.11% 5.33% 2.41% 6.18% 2.41% shown is the 5, 10, and 20 year
BP PLC ADS BP 59.48 3.36 5.65% 7.25% 3.26% 7.25% 2.10% 9.27% 0.00% average high and low dividend
Bristol-Myers Squibb Co. BMY 25.81 1.28 4.96% 5.33% 4.22% 5.33% 1.33% 5.33% 1.17% yield for each of the holdings.
CenturyTel Inc. CTL 36.20 2.90 8.01% 6.00% 3.39% 6.00% 3.39% 10.10% 2.22% We’re showing the high and low
Chevron Corp CVX 81.32 2.72 3.34% 3.45% 2.42% 4.21% 2.42% 4.75% 2.42% yields because we thought that it
Clorox Company CLX 64.81 2.00 3.09% 3.15% 1.81% 3.15% 1.81% 3.68% 1.16% was interesting and informative.
Coca-Cola Company KO 55.32 1.76 3.18% 3.36% 2.22% 3.36% 1.12% 3.36% 0.84% While most investors con-
Colgate-Palmolive Co CL 84.15 2.12 2.52% 2.28% 1.80% 2.28% 0.98% 2.44% 0.91% sider the average dividend yield
Computer Programs & Systems CPSI 39.67 1.44 3.63% 6.33% 2.12% 6.33% 0.00% 6.33% 0.00% to be relatively modest as well as
ConocoPhillips COP 56.64 2.20 3.88% 3.74% 1.86% 3.74% 1.86% 4.67% 1.86%
relatively stable, the data on the
Consolidated Edison, Inc. ED 44.63 2.38 5.33% 6.01% 4.75% 6.01% 4.75% 7.77% 4.01%
table suggests otherwise.
CPFL Energy Inc. CPL 61.58 4.58 7.44% 12.83% 4.31% 12.83% 0.00% 12.83% 0.00%
1.83 4.50% 3.08% 4.70% 3.08% 7.08% 1.56%
Thanks to the ever present
Dominion Resources Inc. D 41.28 4.43%
DuPont de Nemours & Co. DD 39.37 1.64 4.17% 6.48% 3.04% 6.48% 2.85% 6.48% 1.59%
market volatility, even the most
Elbit Systems Ltd. ESLT 63.89 1.44 2.25% 2.80% 1.09% 7.73% 0.43% 7.73% 0.43%
stable and modest dividend
Energy Transfer Partners LP ETP 48.83 3.58 7.32% 11.12% 3.55% 11.12% 3.55% 11.12% 3.55% yields can see a significant move-
ENI S.p.A. E 47.08 2.00 4.26% 7.60% 4.51% 7.60% 1.83% 7.60% 1.83% ment between their high and low
EV Energy Partners, Units EVEP 32.37 3.02 9.33% 18.20% 0.00% 18.20% 0.00% 18.20% 0.00% yield over time. Consider Do-
Federated Investors Inc FII 26.76 0.96 3.59% 21.76% 1.55% 21.76% 0.48% 21.76% 0.42% minion Resources for example, a
General Mills Inc. GIS 70.31 1.96 2.79% 2.72% 2.40% 2.72% 2.11% 3.98% 1.57% large, conservative electric util-
Genuine Parts Company GPC 42.92 1.64 3.82% 4.19% 2.79% 4.19% 2.71% 4.19% 1.41% ity. Its dividend yield over the
Gladstone Capital GLAD 7.38 0.84 11.38% 19.04% 6.92% 19.04% 4.92% 19.04% 4.92% last 20 years ranged from a low
Glaxo Smithkline ADS GSK 39.38 2.29 5.83% 5.90% 3.05% 5.90% 2.21% 5.90% 0.00% of 1.56% to a high of 7.08%.
H.J. Heinz Company HNZ 46.31 1.68 3.63% 4.23% 2.89% 4.93% 2.85% 4.93% 1.69% The difference in total
HCP HCP 28.35 1.84 6.49% 6.57% 4.62% 9.84% 4.52% 11.64% 4.52% return between buying Domin-
Health Care REIT Inc HCN 43.25 2.72 6.29% 7.26% 5.10% 14.37% 5.10% 14.37% 5.10%
ion when it’s yield exceeded 7%
Hershey Co. HSY 36.43 1.19 3.27% 3.43% 1.68% 3.43% 1.50% 3.43% 0.55%
and when it’s dividend yield is
Integrys Energy Group TEG 48.34 2.72 5.63% 6.48% 4.05% 6.48% 4.05% 7.96% 4.05%
below 2%, over the last 20 years
Johnson & Johnson JNJ 66.03 1.96 2.97% 3.00% 2.12% 3.00% 1.18% 3.00% 1.16%
Kimberly-Clark Corp. KMB 62.15 2.64 4.25% 4.30% 2.83% 4.30% 1.51% 4.30% 1.51%
over the last 20 years, needless
Kraft Foods Inc KFT 30.79 1.16 3.77% 4.27% 2.63% 4.27% 0.38% 4.27% 0.38%
to say, is huge.
Main Street Capital Corp MAIN 16.01 1.50 9.37% 14.59% 2.36% 14.59% 2.36% 14.59% 2.36% Our job is to buy when
Maxim Integrated Products MXIM 20.58 0.80 3.89% 6.79% 1.17% 6.79% 0.06% 6.79% 0.06% yields are closer to their highs
Mercury General MCY 38.22 2.36 6.17% 5.93% 2.95% 5.93% 2.19% 5.93% 1.05% and refrain from buying when
Microchip Technology Inc MCHP 29.88 1.36 4.56% 6.79% 1.40% 6.79% 0.08% 6.79% 0.08% they’re closer to their lows. It’s
Middlesex Water Co. MSEX 17.50 0.72 4.11% 4.08% 2.74% 4.08% 2.73% 8.14% 2.73% not rocket science, its just re-
MLP & Strategic Equity Fund MTP 17.70 0.84 4.75% 25.89% 5.78% 25.89% 5.78% 25.89% 5.78% quires patience and discipline.
Norfolk Southern Corp NSC 59.39 1.36 2.29% 2.59% 1.07% 6.01% 0.99% 6.01% 0.99% The EIP was up 3.74% in
Paychex, Inc. PAYX 31.08 1.24 3.99% 4.64% 1.44% 4.64% 0.56% 4.64% 0.53% total return while the equity
PepsiCo, Inc. PEP 66.12 1.80 2.72% 2.92% 1.66% 2.92% 1.11% 2.92% 0.64% holdings were up 5.03%, com-
Philip Morris Intl PM 51.35 2.32 4.52% 4.60% 4.57% 4.60% 4.57% 4.60% 4.57% pared to the S&P 500 up 5.39%.
Pinnacle West Capital PNW 37.49 2.10 5.60% 6.54% 3.99% 6.54% 2.99% 6.54% 0.89%
Pitney Bowes Inc. PBI 24.94 1.46 5.85% 6.33% 2.77% 6.33% 2.64% 6.33% 0.64%
Plum Creek Timber Co. PCL 40.23 1.68 4.18% 4.84% 3.65% 10.05% 3.65% 14.53% 3.65% Market Summary 1st Qrt 10
Procter & Gamble Co. PG 63.22 1.76 2.78% 2.84% 1.85% 2.84% 1.72% 2.84% 1.11% Annual Returns 1st Qrt
Progress Energy Inc PGN 39.02 2.48 6.36% 6.17% 4.93% 6.17% 4.19% 6.57% 4.12%
QWest Communications Q 5.32 0.32 6.02% 8.79% 7.60% 8.79% 7.60% 8.79% 7.60%
US MARKETS 5.84
Realty Income Corp O 31.51 1.72 5.46% 7.18% 5.19% 8.78% 4.91% 12.85% 4.91% GLOBAL EX-US 1.77
Reynolds American Inc RAI 54.17 3.60 6.65% 8.43% 4.01% 8.43% 4.01% 8.43% 4.01%
DEV MRKTS EX-US 1.08
Southern Company SO 34.09 1.75 5.13% 5.20% 4.12% 5.29% 4.12% 12.55% 4.12%
UIL Holdings Corp UIL 29.21 1.73 5.92% 6.26% 4.10% 8.26% 4.10% 9.27% 4.10% EMERGING MRKTS 0.73
Unilever PLC ADR UL 29.70 1.09 3.66% 5.63% 2.64% 5.63% 2.33% 5.63% 1.49% CORE BONDS 1.50
Verizon Communications, Inc. VZ 29.73 1.90 6.39% 2.41% 2.36% 2.41% 2.36% 2.41% 2.36%
LT COMMODITY -4.38
Wayside Technology Group WSTG 9.01 0.60 6.66% 8.57% 3.51% 8.57% 2.84% 8.57% 2.84%
Zenith National Insurance ZNT 38.37 2.00 5.21% 8.06% 1.90% 8.06% 1.90% 8.06% 1.90% Source: Morningstar Q4 2009 Market Com-
mentary
6.98% 3.21% 7.46% 2.59% 8.30% 2.15%
8. Deschaine & Company, L.L.C.
Deschaine & Company, L.L.C.
Page 8
A REGISTERED INVESTMENT ADVISOR
128 South Fairway Drive
Belleville, IL 62223
deschaineandcompany.com
Yep, We’re Open for Business
Jason Loyd
Vice President & Portfolio Manager
F INDING AND HIRING an investment advisor
can be more excruciating than going in for a
root-canal. After all, you’re turning over control of
your hard earned money to someone who isn’t
you. And let’s be honest, no matter how little
experience or time you have to manage your
money, you’re still the only one you really trust to
handle your money. Right? (Continued from page 6) wise. From where we sit, about all government
We understand that. That’s one of the While no one is against any of these things, the has ever done to anything it touches is suck the
800 pound gorilla in the room is how are we, the life out of it. We see no reason to believe a gov-
founding tenets of the firm, to manage money as
taxpayer, going to pay for all of this? Here’s how: ernment run healthcare system will be any differ-
if it were our own money—because, well, it is.
the “wealthy” will pay higher income taxes, busi- ent. Now that the health care fiasco has been let
We think that’s what makes us unique.
nesses with 50 or more employees will have to loose upon the land, what’s next: “Cap and Tax,
Unlike most businesses ,where getting big is the insure them or pay a penalty. Individuals will immigration reform, financial market reform, a
primary objective, ours is to focus on doing one have to get insurance or pay a fine. Insurance Value Added Tax? The list goes on and on.
thing well—managing the money. We figure that if premiums will rise for anyone who already has
we do that well, our clients will win, we’ll win, and
the business will take care of itself.
health insurance, and seniors with Medicare Budget Deficit Bomb Shell
Advantage could lose those plans or pay more to “Government is the problem.”
So everything we do here at Deschaine & keep them. Throw in the fact that the Bush tax
Company starts and ends with the process of — Ronald Reagan
cuts expire at the end of the year which will push For more than 20 years, the political left and the
managing money. That’s also why we are so the Medicare tax on capital gains to 23.8% in antiquated media types assailed President
obsessed with minimizing fees, commissions, 2010. Dividends currently taxed at 15% will be Reagan for running federal budget deficits “as far
and taxes. We don’t like paying them any more taxed at ordinary income tax-rates, with the top as the eye can see,” during his presidency. Well,
than you do. Besides, a penny saved is a penny rate scheduled to rise to 39.6% (from 35%). This after February’s Federal budget report from the
earned, as someone famously once said. means that the tax on dividends could go as high White House, we’re confident Reagan’s critics
At the same time, we’ll be the first to admit as 43% when the new Medicare tax jumps in can now move on and put the new label of
that a firm our size is probably not for everybody. 2013. Obama has proposed a top dividend tax budget “buster” where it squarely belongs, on
Some people are just more comfortable with a rate of 20% (is he capitulating to economic reality?), Obama and the Democratic controlled Congress.
large behemoth. And hey, that’s okay with us. But so if Congress goes along, the top rate on divi- The White House quietly announced, and
we know there are plenty of folks out there that dends would only rise to 23.8% in 2012. by that we mean very quietly late on a Friday
are looking for a little more than the status quo. So, regardless of how you feel about the bill, afternoon, that the budget deficit for the month
And guess what? We think that’s us! the fact is that taxes, fees and insurance rates are of February was a record $221 billion dollars.
Our door is always open; and we will be going to go up, and in most cases, by a lot. Does Again, in case you missed it—the budget deficit
delighted to help you in any way we can. We start any of that sound like it’ll be good for job crea- for the MONTH of February was a record $221
by doing a comprehensive review of your current tion at a time when the economy is struggling to billion. That’s more red ink than Reagan man-
portfolio. In the review, we’ll examine your invest- recover from the deepest recession in post Great aged to accumulate in the whole year of 1986, the
ment holdings, overall asset allocation and as- Depression history? Does any of that sound like worst deficit year of his administration.
sess whether they’re consistent with your goals it’ll give the stock market reason to move higher To put the respective deficit numbers into
and objectives. We’ll also review fees and other over the next five, ten years? perspective, it took our country 169 years to
costs as well as the historical performance of your We wish we had some reason to believe the accumulate $221 billion in total debt from run-
investments. When we’re done we’ll provide you claims made by the supporters of this govern- ning deficits, Reagan took a whole year while the
with a detailed report including specific recom- ment takeover of the healthcare industry. That Obama administration managed to do it in the
the federal government will bring operating shortest month of the year. Now that’s a deficit
mendations. And, you can rest assured, we won’t
efficiencies, innovation and cost containment to and budget record to be proud of—sort of.
pull any punches.
the health care system, as one example. But the As always, thanks for reading. MJD
When you think we can help, feel free give
overwhelming historical evidence tells us other-
us a call at (618) 397-1002. JML