CI Outlook - Archives

First Quarter 2006

April 4, 2006

Mr. and Mrs. Investor
123 Elm Street
Dallas, Texas 75225

Higher year end earnings and a strong economy are helping to move the market indices higher.  As we had expected this move is proving volatile.  More importantly the move higher is growing narrower.  Even as the market averages close in on old highs fewer and fewer stocks are participating.  This condition has set up a classic concern among market forecasters.  The bears point out that a narrowing market is usually the sign of an old bull market coming to an end.  The bulls point to a strong economy and the end of Federal Reserve tightening as portents of higher market indices.  We continue to believe that the money to be made is not by speculating on market direction, but by selecting the appropriate investments at the correct time. 

We consider market levels an important reflection of investor psychology.  We thought this year the market would go higher and finally break out of its long trading range.  This was the P/E expansion we talked about last quarter.  While the economy may slow later this year we are betting that investor psychology will remain positive.  We think interest will return to natural gas stocks as the summer heat takes hold.  Based on that logic we bought Helix Energy, which is our old friend Cal Dive, renamed after its acquisition of Remington Oil.  We continue to hold Texas Instruments as they take market share from Motorola in the wireless area, and will hold Luby’s as we believe it was due a correction in price. 

We diversify portfolios by holding bonds as part of an asset allocation strategy.  Though we have tried to minimize damage from the ongoing Federal Reserve tightening, being diversified has cost us some short term performance.  That is why we always include on your report an index which corresponds to the return your portfolio would have earned had it been proportionately invested in the corresponding indices.  Happily we can report that you exceeded your personal benchmark allocation return again this quarter.

Once again thank you for your continuing patronage.  Please feel free to recommend our service to any friend or acquaintance. 

 

Sincerely,

 

CJ Brott                                                    Karen Burns


July 2014
JUNE 2014
May 2014
April 2014
March 2014
Feburary 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
aPRIL 2013
March 2013
February 2013
January 2013
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
Yead End 2007
December 2007
November 2007
Third Quarter 2007
September 2007
Second Quarter 2007
June 2007
May 2007
First Quarter 2007
March 2007
February 2007
Year End 2006
December 2006
November 2006
Third Quarter 2006
September 2006
Second Quarter 2006
First Quarter 2006
Fourth Quarter 2005
Third Quarter 2005
Second Quarter 2005
First Quarter 2005
Newsletter Year End 2004
Client Newsletter 2nd Quarter 2004
First Quarter 2004
Newsletter - Year End 2003
It Ain't Over 'Till It's Over
Newsletter - 2nd Quarter 2003
Newsletter - 1st Quarter 2003
Newsletter - Year End 2002
Newsletter - 3rd Quarter 2002
Newsletter - 2nd Quarter 2002
Newsletter - 1st Quarter 2002
Newsletter - 4th Quarter 2001
Newsletter - 3rd Quarter 2001
Newsletter - 2nd Quarter 2001
Newsletter - 1st Quarter 2001
Newsletter - Year End 2000
Newsletter - 3rd Quarter 2000
Newsletter - 2nd Quarter 2000
Newsletter - 1st Quarter 2000