David Fleer
Bristlecone Value Partners, LLC
12301 Wilshire Blvd., Suite 320
Los Angeles, CA 90025 USA
Work 1-877-806-4141

Monthly Digest – November 2012

November 16th, 2012

What do election results mean for investors?  

Now that the 2012 elections have concluded, investors are parsing the results and their implications for the economy and stock market.  In some respects, the elections clarified important fiscal questions; in most areas, much uncertainty remains.

To begin with, we should note that the presidential election result—in and of itself—tells us little about the future direction of stocks.  As we’ve discussed before, any important piece of legislation needs to find support in both houses of Congress, as well as the oval office.  While the Democrats won the White House and expanded their majority in the Senate, Republicans retained a substantial edge in the House of Representatives.  Political gridlock remains a likely scenario.  Read the rest of this entry »


Quarterly Commentary – Third Quarter 2012

November 2nd, 2012

The third quarter, indeed the first three quarters of 2012, have proved—somewhat confoundingly—a very good environment for assets of nearly all stripes. The good performance of stocks and bonds has been confounding because it has come against a backdrop of threatened European monetary breakup, US political cowardice that has left major fiscal issues in a dangerous state of limbo, and a Chinese economic slowdown. The only one of these problems that looks ever so slightly closer to being resolved now compared to 3 months ago is the EU monetary crisis and that apparently was enough to push global stock markets further ahead in the third quarter.

The S&P 500, a broad gauge of US large company stocks, rose 6.4% in the quarter and is up 16.4% through the first nine months of the year. Generally, foreign stocks did as well or better than US stocks in the quarter, but are up somewhat less for the full year.

Read the full commentary

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