Spring 2020 Quarterly Commentary

The New Year 2020 so far has been one for the ages. COVID-19 news flow has been scary, depressing and relentless. It has changed the world as we know it and there will no doubt be long-lasting economic, market and social implications. We have a ‘new normal’. ‘Social distancing’ and ‘flatten the curve’ are new national taglines. Who would have thought at the beginning of the year that social distancing would ever become preferred by family, friends, clients and co-workers? Certainly not us.

Winter 2020 Quarterly Commentary

A New Year brings both new challenges & opportunities. Following a strong 2019 will be difficult. Last year, $6.2 trillion in new shareholder wealth was created by the stock market. That’s a lot of stimulus for our consumption-driven economy!

Fall 2019 Quarterly Commentary

Our economy is bifurcated to say the least! Our consumer-driven service sector has benefitted from both wage gains and low interest rates. In fact, the most recent ISM Non-Manufacturing (Service) Index remained in expansion territory with 13 of 18 industries in the index showing growth. The L&G investment team sees a healthy U.S. consumer as vitally important to the economy & market.

Summer 2019 Quarterly Commentary

To say the market has climbed a ‘wall-of-worry’ the first half of 2019 would be an understatement! Trade wars, recessionary risks, Middle East tensions to name a few. All said, stock returns were stellar and bonds rallied (rates down) significantly. The U.S. fixed income market, with its low and positive yields, remains a safe haven & the bond market-of-choice for global investors.

Spring 2019 Quarterly Commentary

What a difference three months can make! After the stock market’s weakest December since the Great Depression (a market decline of 19.4% from the highs), the first quarter of 2019 experienced the strongest bounce in over 10 years with the S&P 500 Index advancing +13.1%! The Fed’s “dovish pivot” near the end of 2018 was the primary catalyst for the market’s bull run.

Winter 2019 Quarterly Commentary

While the markets ended 2018 with a thud (the worst December stock market performance since the Great Depression), we believe the current environment for stocks is favorable as interest rates remain low and, one-by-one, our major market headwinds approach resolution. It is our belief that the strong returns of 2017 ‘pulled forward’ last year’s expected returns.

Fall 2018 Quarterly Commentary

The Fall can be a tumultuous time for the markets. Volatility can increase as hedge funds and mutual fund managers reposition their portfolios by selling losers and chasing winners. This year we expect amplified volatility after last year’s very strong returns, this year’s solid returns and a midterm election on the horizon.

Summer 2018 Quarterly Commentary

K.I.S.S. is an acronym that stands for “Keep It Simple, Stupid”. Per Wikipedia, the KISS Principle states that simplicity should be a key goal and unnecessary complexity should be avoided. In its most simplistic sense, KISS could be applied to investing basics in coming months. Investors trying to ‘time the market’ and reposition their portfolios before midterm elections may be better off just holding tight.

Spring 2018 Quarterly Commentary

As an active money manager, we look for opportunities when others are fearful. LaFleur & Godfrey views the volatility exhibited by the market the last few months, after years of virtually no volatility, as a blessing and not a curse. Because the markets are trading more ‘normal’ based on fundamentals (profits) and with less correlation, we are beginning to see many more opportunities to invest in great growth companies at very reasonable valuations.

Winter 2018 Quarterly Commentary

A New Year typically brings with it a new sense of optimism. This really should be expected in 2018 coming off a very strong market last year and with the recent Tax Bill signed by the President. This keeps us constructive on the markets in the upcoming year but our exuberance has been replaced by cautious optimism for several reasons.