Quarterly Letters To Clients
IN our year-end letter to clients, we typically tell you how markets did over th course of the year, how well you did comparatively, and then go into some level of detail about which parts of your portfolio contributed the most and the least to your returns. As always, you will still find the relevant return information in the enclosed report. We imagine, however, that what most of you really want to know is, "What's going to happen next?" While prognostication is not our forte, we decided to have a little fun with this letter, inspired by, and with the help of famed market commentatory, Byron Wien.
Medley & Brown Blog
The Convenience (and Some Potential Pitfalls) of Beneficiary Designations on Your Savings or Investment Accounts
One can easily designate beneficiaries on accounts at banks, brokerages, and other financial institutions. After an account owner’s death, the account assets can then be transferred relatively quickly, usually by having the beneficiaries fill out a form and attach the account owner’s death certificate.
I am often asked for my opinion on the direction of the market. There are certainly times when I have thought the general market was overvalued, and at other times I have found it cheap. Toward the end of 1999, we wrote extensively about the excesses in technology companies—Yahoo at $177, AskJeeves at $64, AOL at $112—and further, how large, global companies were commanding prices which seemed excessive. General Electric sold for $56, Cisco Systems got to $75, Intel at $73 . . . and today, seventeen years later, none of these companies is back to its 1999 high. Yes, we knew certain sectors of the market were expensive, and by avoiding these, our performance was terrific (in relative terms) for the difficult three years after 1999.
Meet Our Team
Tim C. Medley
Tim Medley has been in the investment business since 1967, founded the predecessor to our firm in 1988, and was the first person in the State of Mississippi to be awarded the CFP® certification.View Profile
Doug Muenzenmay, CFA, CFP® joined Medley & Brown, LLC, in April 2010. Doug has 24 years of capital markets experience including portfolio management for individuals, institutions and endowments.View Profile
Julius Ridgway, CFA joined Medley & Brown, LLC, in July 2002. He has over 15 years of direct investment experience, and spent the previous ten years involved in various aspects of financial services, banking and real estate.View Profile
Eddie Carlisle, CFP® joined Medley & Brown, LLC, in May 2006, having previously practiced law for five years at Watkins & Eager, PLLC.
Eddie serves as the firm's Chief Compliance Officer.View Profile
Quotes & Commentary
Since 1926, the market’s cheapest stocks have outperformed their more expensive counterparts by 4.6 percentage points annually, according to data assembled by Dartmouth’s Kenneth French. But that was then. Since February 2007, the cheapest stocks in the U.S. have lagged their more expensive counterparts by 2.6 percentage points annually....