More Uncertainty Equals Market Volatility
We apologize for not getting our newsletter out in October. Hurricane Sandy forced us to juggle priorities. We hope that all of you had only minor inconveniences.
With Sandy and the elections behind us, its time to reflect on where we go from here. The markets have had an adverse reaction to the election outcome. The financial markets hate uncertainty and the election results have failed to instill any confidence in leadership or a resolution to the fiscal cliff or debt ceiling. In other words, we are headed for more of the same.
Over the next several months, we expect to receive mixed economic news as well as constant media hounding around the infighting that will take place in Washington. Problems in Europe are also resurfacing and creating turmoil in the markets. In fact the market has already dropped about 4.6% from the high point of this year.
But this is nothing to be alarmed about. Given that we had a very strong August and September (unexpected given the macro environment for profits etc.) it is not surprising that the market would pause (remember we cannot go up in a straight line and we have to think long term).
It is possible we will see further downside in the market but even with the drop in the market, the average stock in our portfolio is up 5.8% and that does not even include the generous dividend yield of 2.9%. We are confident that over the long term, our high quality dividend paying stocks will reward investors. We do have cash in our portfolios and will use the market corrections to buy stocks at cheaper prices.
In the article below, we talk about the results of our September survey. Many thanks to all of you who participated!
If you have any questions, please call. We are happy to take the time to speak with you.
Warm regards,Catherine Maniscalco Avery
The backbone of CAIM is to employ a classic long term investment strategy including dividend paying stocks. CAIM is an independent, women owned investment management firm specializing in managing investment portfolios for women and baby boomers.
November 9, 2012| Issue No. 37
In This Issue CAIM 2012 Survey Results CAIM Mrkt Update 2/4 The SS Question
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CAIM 2012 Survey Results Are InThe results of last month’s CAIM Newsletter survey are in! The answers we received were extremely positive and we are taking notes of what our readers have to say!The majority of respondents (47%) read the CAIM Newsletter frequently. The second category (41%) reads it all the time! Good news indeed!
What Makes Readers HappyContent is definitely ‘king’ when it comes to the CAIM newsletter as most readers rated that factor the highest in satisfaction rating. Respondents were very happy with the overall content of the newsletter, highlighting such things as the variety of topics and market updates offered in particular. This was followed by length, images, layout, color and design. An overwhelming 82.3% feel that the newsletter effectively provides information important to the overall needs of its readers.
Feedback on SpecificsWhen asked what specific topics readers would like to see added, responses varied from requests to keep it simple for non-financial people, to particular stock advice, where money is moving and detailed information on new government policies and future outlooks. While we will certainly do our best to honor as many of the requests as we can, please keep in mind that because of our regulated industry we also have to be cognizant of the type of advice we are giving. If you ever need specific investment advice it’s therefore probably best to pick up the phone and call.
Improvements?When it came to suggestions for improvement readers requested a comment section, topics for non-financial geniuses and shortening the length of the read. There were also calls for “more of the same.”
AM WinsOverwhelmingly people want to receive the newsletter in the weekday mornings.
Passing it AlongResponses were mixed as to whether people would pass on the newsletter to others. 29.4% was the highest number who said they would be ‘somewhat likely’ to pass it along, followed by 23.5% respectively who said they would be ‘very likely’ and ‘somewhat unlikely’ to pass it along.
CAIM Market Update – 2nd Quarter
From a peak in early April the S&P 500 fell almost 10% by early June but has rebounded in recent weeks. Stocks have moved modestly lower this quarter and…Read more >>
The Social Security QuestionWhen it comes to the pros and cons of when to take your Social Security benefits there’s an ongoing debate. Is it better to…Read more >>
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