How Can Failure Be A Good Thing?

Below is a synopsis of this investment report: Late last week, China experienced its first corporate bond default as the solar panel maker, Chaori Solar, failed to make an interest payment.  Although defaults are commonplace in the U.S., China’s local governments have historical
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Is A Santa Claus Rally Looming?

Below is a synopsis of this investment report: A “Santa Claus” rally is used to describe the phenomenon of equity markets trending upward during late December. Explanations for this repeated behavior include tax considerations, lower liquidity around the holidays, and buyi
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U.S. Manufacturing – The Unsung Hero

Below is a synopsis of this investment report: The data suggest that the U.S. has experienced a rise in exports since 2005, and we feel that this is just the beginning of a long secular trend to bring manufacturing back to the U.S. The main driver of resurgence in domestic manufacturi
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A Subtle But Crucial Data Point

Below is a synopsis of this investment report: A key component to our secular bull thesis on equities is the overall strength and direction of the U.S. economy. As third quarter earnings wrap up, small cap stocks have significantly outperformed large cap stocks on the back of solid ea
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A Tale Of Two Cities

Below is a synopsis of this investment report: Consumer spending drives 70% of our economy, yet it’s shaping up to be a “Tale of Two Cities.” High-income earners are experiencing several tailwinds as home values and equity portfolios continue to rise, while low-incom
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Kicking The Can Down The Road

Below is a synopsis of this investment report: Crossing the debt ceiling has been averted, and the government shutdown is over… For now. Now that our government has “kicked the can down the road” until February, we expect the media will shift its focus back to the po
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Tweeter vs. Twitter

Below is a synopsis of this investment report: Tweeter Home Entertainment saw its stock price surge last Friday as demand for the stock of this bankrupt company increased seven-fold. Twitter’s initial public offering (IPO) is the most anticipated IPO of 2013, and last Thursday t
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Debt Ceiling Implications

Below is a synopsis of this investment report: The media has devoted a great deal of attention towards the government shutdown and debt ceiling debates this week, as well as a possible default by the U.S. government on its debt. Whereas we feel that the government shutdown is immateri
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What’s Priced In?

Below is a synopsis of this investment report: As important as it is to understand the reasons for a market correction, it’s equally important to understand the drivers behind an unexpected market rally. Investors witnessed two market rallies this week fueled by short-term traders com
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Investors Get Paid To Think Long-Term

Below is a synopsis of this investment report: Our shift from fixed income to equities in our conservative portfolios has increased short term volatility, which is a healthy component to any equity bull market. History shows that stock prices go up over time and during strong bull mar
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