We believe the economy remains in good shape, supported by low interest rates, low inflation, and strong employment. We believe earnings growth remains sufficiently strong for further market gains, especially for the holdings in our Century Management portfolios. We continue to see the energy, materials, industrials, and financial sectors as the cheaper sectors of the market.
After a significant rise on Monday, the stock market declined sharply on Tuesday, December 4. We believe this was a result of several issues that converged, heightening investor concern. Adding fuel to the fire and increasing volatility were traders that, in our opinion, felt an extra dose of urgency to balance or close positions ahead of Wednesday’s stock market closure for the National Day of Mourning for President Bush.
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 and much more.
In our latest commentary, we discuss the cause of this week’s market sell-off (other than stretched valuations in many companies) and much more.
We believe that an oil shortage is coming.
Oil prices are going higher and the opportunities that we see in energy.