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PremiumPoints 2Q-2023: The Summer Doldrums

Posted: August 31, 2023 | by: Thomas F. McKeon, CFA

In this issue: Market Indigestion and Doldrums, Clothier Springs Capital Partners Update, the Housing Shortage, Performance and Perspective, Long Term Returns & Drawdowns, Noise, Damned Noise and News Feeds, Summer Doldrums Not a Problem, Steve Winwood and Eric Clapton play "Can't Find My Way Home."

 

From the CIO's Desk

Our registration with the Pennsylvania Department of Banking and Securities was approved and effective as of June 30th, 2010. That means we just had our 13th birthday. We hope to have many more.

 

Review & Outlook 2Q-2023

The equity market just posted a third consecutive positive quarter and equity markets in the U.S. are now within shouting distance of their all-time highs. The rally has continued through July as inflation shows further signs of abating and the Fed’s effort to stem inflation with interest rates hikes nears an end.

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Indigestion and Doldrums

The markets are digesting numerous moving data points, inflation, interest rates, economic growth (perhaps recession) low unemployment and more. With so many uncertain variables, it is no wonder that the equity markets are taking a breather (written in late August).

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Clothier Springs Capital Partners Update

We are in the final phase of our audit for 2022. The new auditor took extra time as they got acquainted with our operations and accounting conventions. All the cash flows reconcile and the last piece is the Fair Market Value estimates.

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Perspective and Performance

The chart above shows the cumulative total return (gains + income) of the MSCI US Broad Equity Market Index over the thirteen year life-span of Clothier Springs Capital Management, LLC.

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Returns, Risk and Drawdowns

The chart above shows the total returns of the indicated asset class benchmarks for the period 6-30-2010 (CSCM Inception) through 7-31-2023.

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Noise, Damned Noise and News Feeds

The screenshot above is from one of the financial news feeds we follow. The two adjacent items say exactly the opposite things: time to buy, time to sell. Only one of them can be correct.

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What He Said

We read a lot to stay abreast of all the moving parts that impact the capital markets. Sometimes someone else says what we are thinking a little better and more clearly. Below is a spot on column from Jeff Sommer, who writes a weekly column for the New York Times: Strategies.

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"Can't Find My Way Home"

Steve Winwood and Eric Clapton performing “Can’t Find My Way Home.” This performance sparkles and the two rock ‘n roll veterans know it. From the 2007 Crossroads Guitar Festival.

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