Hurricane Season
Market volatility, shifting currents in domestic and international economies
have investors in a quandary. Instant press releases, unemployment numbers
and congressional battles seem to have started the mighty winds of confusion
and discontent swirling, causing major negative and positive swings in
market values. These sudden shifts are like a financial Hurricane wreaking
havoc on personal and intuitional wealth.
With all eyes focused on the short-term events of the day, many investors
are forgetting the basics of investing. Identifying great companies who
produce great products profitably and staying invested for the long haul
is key. Hurricanes do pass and the rebuilding begins.
The eye of a Hurricane is calm and a reflection of how things will be
after the storm blows by. Even in this market turbulence there are several
factors that may indicate things will be better after the storm passes.
Record levels of money invested in U.S. T Bills driving rates to historic
lows and over $500 Billion currently are held by Venture Capital funds
for deployment when the Hurricane passes.
Buford Dickson Harper & Sparrow continues to have a disciplined
long-term perspective of the market. Stock selection, earnings acceleration
and multiple expansions are becoming the theme of the 2010 market performance.
We believe that the Hurricane’s winds will subside soon and that
our investment strategy positions us to provide our clients with positive
returns.
William H. Young
President & COO