& strategic views

2010 2nd Quarter Commentary

The second quarter marked a pause in the 18 month rally in the equity markets. International markets performed substantially worse than domestic ones, particularly when translated into U.S. Dollar terms. Much of this correction stemmed from the uncertainties in Europe and lackluster domestic indicators of economic activity.

The last three months have brought market participants to a point where many feel we are evenly balanced between economic decline and growth. That viewpoint is reflected in asset prices in both the stock and bond markets. We hold to our belief that growth will occur, albeit slowly, due to a very stubborn labor market in which unemployment remains high. Economic data aside, …

Time to Panic? (or Why you Need an Advisor)

by H. Brian May

Last week we experienced a selloff reminiscent of the days of Lehman Brothers’ failure in 2008. While some claim a trading error may have been responsible for a portion of the massive decline on Thursday, we know that fears of a European collapse and Greek contagion gave speculators and traders a reason to sell.

It’s clear the markets have risen substantially from the March 2009 lows, but we continue to live by the belief that it is valuations that drive markets in the long term and emotions and current news that drives markets in the short term. As much as we believe …

2010 1st Quarter Commentary

During the last month, we passed the one year anniversary of the stock market’s most recent crisis low. We remember quite clearly that ugly Monday in March (3/9/09), 3 days after the S&P 500 hit an intraday low of 666, then closed at 676.53, reflecting a point where in the wake of the credit crisis, panic selling appeared to capitulate. At that point the S&P 500 traded at the same level it first crossed in 1996, 13 years earlier. During that period we felt many of the same emotions that you felt. We cannot reiterate this message enough: it is in situations such as those where adhering to a …

Experience the SS&A Difference

Today’s financial landscape is confusing. Both the regulatory structure and Wall Street have made it this way. Looking at recent history it is clear that Wall Street is not in the advice business, as most investors think. Instead, Wall Street is in the business of manufacturing and selling products. In our minds there are two types of financial professionals, those who have a fiduciary obligation and those who do not. Let us explain further.

To separate the various types of advisors, the easiest approach is to investigate two …

Know Your ABC’s: The Impact of Fees on Investment Performance

By G. Gregory Smith, Jr.

As a follow up to our study on how taxes can impair investment returns, we thought it only logical to address how fees are another “hidden pitfall” for investors. The following discussion is intended to be a primer on how investment managers are compensated. The multitude of investment vehicles on the market today prohibit a comprehensive explanation, but we hope this paper can help educate you on the various terms, structures, and layered fee arrangements that you may encounter in today’s market. Please keep in mind that you must always read the prospectus for each fund you …

Taxes — The Hidden Pitfall for Investors

By  E. Scott Batchelor, Jr.

Performance is the great leveler in the investment world. Most people are less concerned with how the vehicle looks than with how fast it travels, how much it costs, and how it will hold up in a crash (and yes, all three puns intended). However, measuring performance is not always as simple as one might think; especially when you take into account the obscurity under which many financial institutions operate. For instance, say you read that Mutual Fund XYZ had a 20% return for 2006. “Wow!” you’re probably thinking. Well, what if I told you that the fund had a …

Is Risk Factored into Your Investment Plan?

The fluctuations in the securities markets have increased in recent days, driven by a myriad of economic data that has some investors fearing the onset of a recession.  The former Federal Reserve Chairman, Alan Greenspan, a little out of character, publicly gave his probability of a recession by year end 2007 at one in three.  His well-followed speech sent a ripple throughout markets, bringing back the memories when market participants hung on his every word. 

The large sell-off in China and other emerging markets caused investors world wide to reevaluate the risk premiums that are factored into their portfolios.  Some market pundits were crediting this to an unwinding of the Japanese …