Mid-Quarter Update
2005's Third Quarter grinds on, with all major market averages down or flat for the year so far. Most client accounts are faring better, thanks to overweighted positions in energy stocks, select healthcare, well-performing industrials, as well as special situations we have been able to uncover. Inertia is the best way to describe market action. Stocks doing well this year have continued to do well, while those which have been stuck remain so. Our media and financial positions, in particular, have not gone up even though they continue to generate a lot of free cashflow. Sometimes good value will be discovered eventually (as with certain healthcare stocks) and other times stocks just go nowhere. Patience is normally the best prescription for market-beating returns in the long run, but we continually evaluate whether there are better places for your money. If better situations emerge (including just holding cash for a while), we will not hesitate to change, but our eye remains trained on the long term.

Labor day is almost here and is a great time to take stock of how the year is going financially. Feel free to contact us to discuss how things are progressing and to answer any financial planning questions. Enjoy the rest of the summer.
- posted by Jay @ 10:19 AM