Applying the Teachings of a Nobel Laureate for Over 20 Years

Welcome to 2014!  We hope you enjoyed a wonderful holiday season! Stocks continued marching upward in the fourth quarter.  Despite modest expectations as the year began, the S&P 500 index of Large U.S. Stocks notched its best annual performance since 1997, with a 32.4% total return.  Small U.S. Stocks shot even higher, with the Russell 2000 up 38.8% for the year.  Even better, the gains came without the anxiety-inducing volatility to which we have grown accustomed in recent years.  Certain niches of the global stock market—Emerging Market Stocks and Real Estate Securities in particular—...
Read more...

The Importance of Maintaining Investment Discipline Amidst Political Dysfunction and Uncertainty

As we write this letter in the first days of the new fiscal year, much of the federal government has shut down for the first time in 17 years.  This situation resulted from Congress failing to pass a continuing resolution (CR) to fund the government for the next several months.  House Republicans have adopted a hard line, insisting that any CR be accompanied by significant cutbacks and/or delays in the implementation of the Patient Protection and Affordable Care Act, conditions that President Obama and Democrats find unacceptable.  To make matters worse, within the next couple of weeks, we...
Read more...