Q42006 Mid-Quarter Update
Another Thanksgiving has passed, and we now enter a season of celebration, family, and remembrance. Year end will usher in a time of review and planning, but for now we can enjoy the moment and take comfort in the things that give us contentment. Financial matters can sometimes take a backseat in December, as we overspend on gifts or vacations. But the holiday season can also be a time to reflect on the place of money in our lives, not as an end in and of itself, but as a means to achieve our goals, whatever they might be.

This year has, to date, shaped up to be a rather good one for Arrival Capital clients and other investors. We were tested by the early summer turbulence, but since then our positions in healthcare, energy, materials, and technology have all performed well. Many dividend paying stocks have not only provided income but also appreciated in value, the type of wealth creating situation we particularly enjoy. Diversification has, as usual, proven its benefits as different types of industries have moved higher at slightly different times, keeping a lid on volatility while moving account values steadily higher. Lately, the popular press has taken notice of the rising stock market, often in tandem with stories of a deteriorating real estate market. Of course, real estate and stocks both have their place in a portfolio of wealth, but the liquidity offered by the stock market, and the chance to invest in a world full of well-run companies, should never be discounted, particularly when times appear to be bleak.

Being contrarian means moving against the pack. This is not automatically a recipe for success, but if you know the fundamentals of a situation well enough, it is often possible to spot a market overreaction to a transitory event specific to a company or an industry. At Arrival Capital, our investment radar is always sensitive to these types of market reactions. Indeed, this is one of the most important reasons to be steeped in market goings on everyday. Not to trade from hour to hour, but to be there to scoop up a bargain investment when they become available.

We will report back after the year closes. For now, please accept our best wishes for the holidays and for a bright and happy New Year. We thank you for your support and business, and would welcome a chance to discuss any investment issues you have or to consult with any friends, relatives, or colleagues that you believe could benefit from the hands-on, personalized investment management we can offer. Financial freedom and security remains one of the best gifts of all and makes it possible to enjoy the truly important things in life.
- posted by Jay @ 11:41 AM