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Quarterly Investment Commentary

Argent Quarterly Investment Commentary – July 2010

06 August 2010

“The second quarter of 2010 was all about the PIIGS, er, chickens, coming home to roost.  Decades of profligate spending without any semblance of financial discipline created a worldwide buyer’s strike for stocks.  Headlines, particularly about the so-called PIIGS (Portugal, Ireland, Italy, Greece and Spain) caused many U.S. investors to worry that if our government does not show more restraint, we could be next.  In addition, there were growing signs that the U.S. recovery was slowing and corporate earnings comparisons going forward would be harder to beat.  By quarter’s end, all major stock indices were down significantly, wiping out what had been impressive first quarter gains.  Volatility also returned with vengeance, driving nervous investors to Treasuries and gold.  Thus, the stock market, after an impressive run, lost its momentum.  Now the question is, for how long?”

Argent semi-annual investment letter July 2010