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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Short Term Pain For Long Term Gain

Below is a synopsis of this investment report: The recent market volatility has presented an attractive opportunity to put our large cash position in the DIAS Conservative Income (CI) portfolio to work. In doing so, we also dispel three common myths in the market that are critical to
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Diversification – More Than Meets The Eye

Below is a synopsis of this investment report: Diversification is the “Golden Rule” of investing, and proper implementation is absolutely mandatory in a well-constructed portfolio. Despite popular belief, diversification is not achieved by simply buying several high qualit
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Leadership Changes

Below is a synopsis of this investment report: Defensive sectors such as telecom, utilities, and consumer staples led the stock market rally up until the beginning of April. At that time, we felt that these sectors were peaking in valuation and began to prepare for a shift out of defe
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Prices Have No Memory

Below is a synopsis of this investment report: Fundamental investing for the long term should be focused on where a stock is going and not where it’s been. Prices have no memory.  A stock that has doubled can still go higher and a stock that has been cut in half can certainly go
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Volatility Spikes Are Normal

Below is a synopsis of this investment report: Volatility has increased lately although we believe that this phenomenon is healthy and can create opportunities for long term investors. Spikes in volatility often cause investors to panic and sell, even though the cause for the volatili
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Using Value Gaps to Prevent Value Traps

Below is a synopsis of this investment report: Studies have shown that value stocks, or stocks with low price-to-earnings multiples, outperform growth stocks, or stocks with high price-to-earnings multiple, over the very long run. Despite value’s outperformance, growth certainly
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Focus on Total Return

Below is a synopsis of this investment report: Total return for a stock consists of two components: income paid (dividends) and capital appreciation (stock price increase). Studies show that dividends have comprised over 50% of the total return of the stock market over the past 70+ ye
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