In our latest market update we discuss:
- The fundamentals of the companies in our portfolios are by-and-large doing well as of the third quarter, with most providing positive guidance looking forward.
We believe the overall economy is in good shape, and we do not see a recession on the horizon.
- We believe this market correction is largely due to fears of a slowing market and economy as a result of trade issues.
- We believe that stocks, overall, are entering a fair value zone, and have largely priced in a slower economy that has yet to arrive, and stocks are materially cheaper than bonds.
- We continue to believe that oil and energy-related stocks are in a long-term bull market.
- We believe the cause of this week’s market sell-off (other than stretched valuations in many companies) is due to the concern over rising interest rates, which the Fed is raising in an effort to head off the potential of higher inflation.
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Disclosures: Century Management reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that the sectors discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable. Forward-looking statements and projections are not guaranteed. Past performance is not indicative of future results. Investing involves risk including the potential loss of principal. The discussions, outlook and viewpoints featured are not intended to be investment advice and do not take into account specific client investment objectives. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. Century Management is an independent registered investment adviser. Registration does not imply a certain level of skill or training. Century Management is also registered as a Portfolio Manager in the Province of Ontario. More information about the advisor, including its investment strategies and objectives, can be obtained by visiting www.centman.com. A copy of CM’s disclosure statement (Form ADV Part 2) is available without charge upon request. Our Form ADV contains information regarding our Firm’s business practices and the backgrounds of our key personnel. Please contact Century Management at 512-329-0050 if you would like to receive this information.