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Quarterly Investment Commentary

Argent Quarterly Investment Commentary – January 2011

23 February 2011

“When you have an elephant by the hind legs, and he is trying to run away, it is best to let him run.”                                                                                             

 -Abraham Lincoln 

Frequently, the best returns for stocks are when expectations are lowest.  So it was this past summer when a sudden resilient private sector, combined with positive income tax legislation, led to run away stock market returns for both the third and fourth quarters of 2010.  This was quite a turnaround from May and June when the stock market hit the proverbial wall.  Worries primarily over problems in the Euro-zone had led to a second quarter bear market, but such fears were fleeting, and stocks had rediscovered their audience by Labor Day.  It was not that the economy was doing so well; rather that the valuation in the stock market simply reflected too much bad news and other investment options offered so little upside.

Argent semi-annual investment letter January 2011