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

3rd Quarter Review, Active vs. Passive, and Musings About Health Insurance

October 10th, 2014

Despite a small rise in the S&P 500 (+1.1%), the benchmark for the US stock market, most asset classes declined in the 3rd quarter. The culprits appeared to be international tension in Ukraine, Russia, and the Middle East, as well as worries about Fed policy and economic growth not creating enough jobs here at home. The world economy remains a concern too: the Euro zone is flirting with deflation, while China’s historically rapid growth rate has moderated.  Even with the benefit of hindsight, sometimes there is little rhyme or reason to market movements.  During the 2nd quarter, almost all asset classes rose despite pretty much the same news. It is a reminder that investors’ psychology is the most important driver of short-term returns. As Benjamin Graham eloquently explained: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.”

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