On March 19th we hosted one of our regular lunch and learn events. The topic was Social Security. It usually draws a good crowd relative to others, but even I was surprised by how many people attended. The room was full with roughly 50 attendees.
In mid-February, we hosted our annual “State of the Markets” breakfast. Once again the weather was crummy. In fact, the snow was bad enough that schools closed locally. That’s the second time in four years we’ve held our event on a day that school was canceled!
Market volatility has returned. With it, increased fear amongst investors. I’ve heard it coming from our clients and can see it in the way financial media is reporting news. For example, at the end of Q3, Amazon reported another quarter of record profitability, yet a Wall Street Journal article on October 26, 2018 focused on “slowing” sales.
Every election cycle we get a handful of clients inquiring about repositioning ahead of voters going to the polls. Our advice is virtually always the same, if your time frame and investment objectives haven’t changed, neither should your positioning.
This month marks the ten-year anniversary of the climax of the 2008 financial crisis. That September, falling asset prices led to the bankruptcy of the investment bank Lehman Brothers. The collapse started a domino effect which nearly brought down the entire global financial system. Both the US economy and stock market bottomed out in the following months at different points in 2009.
It’s official, we’re currently amidst the longest bull market in US history (as measured by the S&P500 at least). According to data from JP Morgan, the average S&P500 bull market since the 1920s has lasted about 55 months. The current rally is now in its 113th month and just passed the previous record which ran from October 1990 to March of 2000.
I recently spent several days in Los Angeles visiting an asset manager that I hold in high regard, First Pacific Advisors (FPA). The event was a biannual opportunity to hear from each of the firm’s portfolio strategists, ask questions and meet their respective teams.
The 2017 Berkshire Hathaway annual report is out. It is always highly anticipated as it contains Warren Buffett’s annual letter to shareholders which usually is packed with nuggets of investing wisdom.
I read an excellent autobiography this summer by Edward Thorp which I also mentioned in our most recent newsletter. Mr. Thorp’s name is much less known in contrast to his accomplishments. He is a mathematician by training, obtaining his Ph.D. from UCLA. He’s popularly known for a number of feats.
On Saturday, February 27th, Warren Buffett released his 51st annual letter to Berkshire Hathaway shareholders. Every year, the letter is highly anticipated by investors around the world looking to gain insights and wisdom from the 85 year old Oracle of Omaha. This year, in his 31 pages of remarks, Mr.