“As we begin the fourth quarter, we would like to update you on our year”to”date results, as well as share with you some of our overall thoughts and current investment strategy. Let’s begin with our performance. From the low on March 9, 2009, through September 30, 2009, our CM Value I composite (a proxy for our average account) has appreciated 62.20%. On a year”to”date basis through September 30, the CM Value I composite has appreciated 19.01%. This has been a meaningful change from how the year began. As a matter of fact, except for the stock market recovery that took place at the bottom of 1932, this has been the most significant six month recovery in market history.
“So where does this leave us today? The answer to this question seems to be divided into several schools of thought among professional investors.
“One school of thought is that the market has come up too much too soon with little underlying fundamental support from the companies themselves and/or the economy as a whole, and thus we are being set up for a significant pull back in market prices. A second school of thought is that there is a “new normal” going forward which will consist of slow, subpar, economic growth and a fair amount of market volatility. A third school of thought is that the economy is currently recovering in a meaningful way and that individual companies have made the necessary adjustments to not only weather the storm, but to also thrive in the future and to continue to appreciate full speed ahead at least through the first or second quarter of 2010.”
Click here to read the complete Arnold Van Den Berg October 2009 Value Investor Newsletter.
Make sure you do read it, for it is one of the most illuminating newsletter I came across for a while.
“So where does this leave us today? The answer to this question seems to be divided into several schools of thought among professional investors.
“One school of thought is that the market has come up too much too soon with little underlying fundamental support from the companies themselves and/or the economy as a whole, and thus we are being set up for a significant pull back in market prices. A second school of thought is that there is a “new normal” going forward which will consist of slow, subpar, economic growth and a fair amount of market volatility. A third school of thought is that the economy is currently recovering in a meaningful way and that individual companies have made the necessary adjustments to not only weather the storm, but to also thrive in the future and to continue to appreciate full speed ahead at least through the first or second quarter of 2010.”
Click here to read the complete Arnold Van Den Berg October 2009 Value Investor Newsletter.
Make sure you do read it, for it is one of the most illuminating newsletter I came across for a while.
