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Quarterly Investment Commentary

Argent Quarterly Investment Commentary – April 2010

05 August 2010

“With the first quarter of 2010 now in the rear view mirror, there is much to feel good about.  Overall, this was the best first quarter for U.S. stocks in more than a decade; a quarter which celebrated the one year anniversary of the March 9, 2009 lows.  The return over the subsequent 12 months – an eye-popping 68% for the S&P 500 Index!  This occurred even as short-term volatility, as measured by the VIX volatility index, was at its lowest level in two years.  Despite the run-up and low volatility, there is hardly wild exuberance in the marketplace.  Investors continue to withdraw about as much money each month from U.S. stock mutual funds as they invest.  This is a surprise, because price-earnings ratios seem about right – currently 15 times coming year’s profits – not excessively cheap, but far from a bubble.”

Argent semi-annual investment letter April 2010