Young Capital Growth Company, LLC Fee Only Registered Investment Advisor

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INVESTMENT REVIEW

 

 

The broad stock market has made an excellent comeback from its lows in March 2009. Standard & Poor’s 500 index is up 26.34% for 2009, bouncing back from a 37% decline in 2008. There has been a collective sigh of relief that we have stepped back from a calamity. As we dig ourselves out of the rubble; the nursery rhyme Humpty Dumpty comes to mind.  “Humpty Dumpty had a great fall”…the question becomes how or should we put Humpty Dumpty back together again?   The debate on whose to blame has been followed by a series of books from the culprits defending their actions; while the pending legislation for reform becomes weaker as we move farther from the crisis and our brokerage statements begin to improve.  Stay tuned as to whether we will receive meaningful reform that prevents another near calamity

 

The reality is that the Dow Jones Industrial Average at 10,000 in February 2010 was also at 10,000 in March 1999.  What’s our lesson?  Diversification, Fixed Income, Diligence, Monitoring & Supervision, Education.   Buying an index can work for you sometimes as well as against you other times.

 

Outlook 2010

 

The stock market will again be volatile, with an upward bias.

 

On pullbacks in the market we will add to positions in the materials sector, the financial sector, and the technology sector.  We will also add to our international positions, and individual fixed income securities.

 

 

 

2/10/2010

Marian P. Young

Registered Investment Adviser

Young Capital Growth Company, LLC

Telephone 866-930-1870

marianyoung@onebox.com