Reflections on the week ending September 12, 2010

The business model and share price of Wealth Management companies are correlated with, and amplify, the overall market.  That makes them a particularly good investment during a recovery.  While it is difficult to say precisely where we are in the cycle, we strongly believe that we are “closer to the bottom than to the top” (i.e. while the short term is unpredictable, the medium longer term outlook is up).  The attached Bloomberg link provides evidence in support of that hypothesis:

http://www.bloomberg.com/news/2010-09-06/dividends-top-bond-yields-by-most-in-15-years-as-u-s-cash-pile-increases.html