In the first half of 2013, equity markets advanced in most parts of the world to finish with an overall gain of +6.7% as measured by the Global Dow Index (GDOW).
Stock markets in Europe, Asia, North and South America all finished in the plus column, while the Dow Jones Industrial Average (DJIA) index went up 14% during the same period.
As mentioned in last quarterly commentary, high quality corporate bond yields are less than the equity price equivalents so we continue to believe that investors with a long-term investment horizon should consider to overweight stocks versus bonds.
Our investment portfolios also finished in the plus column for the first half of 2013. Looking forward, we continue to believe second quarter earnings will be decent and may be a catalyst to move the markets higher before the end of 2013. As long as car buying and home purchases remain strong, the stock market should continue to recover in our opinion.
Our investment approach is to buy companies with consistent earning power, high return-on-equity, little or no long-term debt, all while purchasing those stocks at reasonable prices.
We have a system that filters thousands of stocks on a weekly basis using the Sparrow 75-point checklist that screens the highest quality companies, which are then reviewed and considered for purchase in your portfolio.
I have most of my own investments in the stocks that are in your portfolios, of course this does not guarantee a return, but it does focus my attention on things that matter to you as a fellow stockholder.
Thank you for your continued confidence. Feel free to forward to friends who invest, they may find this useful.
Investors cannot invest directly in an index. Indexes have no fees. The reader should not assume that any investment ideas identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
