|
 |
| Shoreline Wealth & Investment Management |
|
Newsletter
April 2004 |
|
|
|
|
|
|
|
|
|
|
|
While small and mid-cap stocks have outperformed their large-cap cousins over the past few years, there are several reasons why this is likely to change. Here are 8 for your consideration: 1) there is a global economic (albeit jobless) recovery; 2) a low dollar helps large companies increase exports; 3) large companies tend to pay dividends which are now tax advantaged and more attractive; 4) large-cap stocks are trading at a lower premium (P/E) than small or mid-cap stocks; 5) low interest rates are allowing large companies to reduce or restructure debt at lower rates and improve their bottomline; 6) improved corporate governance (think Enron, Worldcom, Tyco, Martha Stewart) means companies are more conservative (reliable) in their earnings estimates; 7) an improved market has reduced the likelihood of large companies defaulting on their pension liabilities; and 8) no sector has ever dominated indefinately and a natural rotation from one sector (small and mid-cap) to another (large-cap) is the historical norm.
On the positive side, the economy has been chugging along nicely and real estate (I've been wrong about this one) continues to perform well. Better still, if you read the column at the right entitled "The Bottom Line," it doesn't really matter. If investors balance their portfolios between different asset classes (stocks, bonds, real estate and cash) as well as different sectors within each class (small cap, large cap, international) and re-balance these allocations regularly, the results should be better in good times and less painful in bad. Moreover, it takes the guesswork out of selecting the right place to be at the right time (not even the experts at Harvard try to do this). Instead, the re-balancing allows you to regularly sell high and buy low (better that the alternative), improving performance and increasing safety.
CELEBRATING 24 YEARS
Since 1980, I have been providing financial advice to investors and I'm proud to say that our service and performance (see "Bottom Line" section on the right) continue to be superior to the market and our peers. Thanks for your support.
| Selecting an Advisor |
|
 Warren Buffet, the most successful investor of the 20th century learned his craft from Benjamin Graham, author of several books including the legendary "Intelligent Investor." This has been recently updated by Jason Zweig who includes 16 key questions to ask your advisor and 11 an advisor might ask...
Read on... » |
| April is Time to Review Your Retirement Plan Results |
|
 Our clients have made money over the past 5 years unlike, according to a recent poll, the 80 million Americans who are still down over 50% during the same time period. Review retirement plan basics by clicking on the link below and see our results in "The Bottom Line" in the top right column's link.
Full Story » |
| Living Trusts: Disinheriting Uncle Sam - Part 3 |
|
 Creating or updating a will and establishing a living trust will likely reduce probate time and costs after death. One way business owners can protect assets while alive is the establishment of a family limited partnership.
Full Story » |
| Looking for a Speaker for Your Event? |
|
 Shoreline Wealth & Investment Management has given presentations to Fortune 500 companies as well as many local groups and organizations. If you are looking for a professional presentation on topics ranging from investments to estate taxes to business or tax law, please contact us
Click here for more details » | |
| The Bottom Line |
 |
| This is where we provide the performance of our conservative, moderate and aggressive portfolios and compare these to the S&P 500 and NASDAQ Indexes. While they are an important consideration, performance is only a portion of the evaluation investors should consider when evaluating investment management. Other considerations include the risk taken to generate the returns, the quality of the service, the reasonableness of the fees and, more important now than ever, the integrity of the investment manager.
Find out more.... |
|
|
email: cbloom@cfiemail.com
voice: 805.886.3624
web: http://www.swimllc.com/
|
|
|
|
| |
Return to home page
|
| |
|
| "Very professional and informative seminar" - Brown & Root, a Halliburton Company |
|
