“In any sort of contest – financial, mental or physical – it’s an enormous advantage to have opponents who have been taught that it’s useless to even try” – Warren Buffet
Spring has arrived, and 2017 has continued with the positive sentiment that closed 2016. U.S. stocks have done very well with the S&P 500 index up over 6% year-to-date. This positive movement is largely the result of continued expectations that the new President will implement business-friendly tax and trade policies that will further boost corporate earnings.
In the December quarter, 65% of companies in the S&P 500 beat their earnings targets and had an average earnings growth rate of 4.9%. This is the first time the index has seen a year-over-year growth in earnings for two consecutive quarters since March 2015. More good news is expected in the coming quarters, but investors are now increasingly beginning to wonder if the stock market is “overvalued” and “are we due” for a correction or crash?
“In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment” – Charles Darwin
2016 ended exactly how we predicted…..or perhaps the opposite of that. Election results contradicted most polls, and the market’s reaction to the Republican win was not the Armageddon that I expected. In fact, the Dow, Nasdaq and S&P indexes all improved more than 2.5% from the election to year-end. Benjamin Graham, the man considered to be the father of value investing, taught that “stocks aren’t pieces of paper or lottery tickets; they are units of ownership in real businesses whose underlying value does not change
Richie Capital Group specializes in discretionary investment services for Institutions and Individual Investors. Our investment goal is to maximize client returns over time through an established investment process. We invest money on behalf of our clients and typically do not focus on providing individual comprehensive financial advisory services. However, to bring in clients over the past year, we have gladly performed these services for many who have asked. In this process, we have gained greater insights into the broader world of Financial Advisory Services (Brokers, Investment Advisors, and Wealth Management firms). There are many outstanding companies providing advisory services. But in most other cases, we have come to the conclusion that…. they may not be working in your best interests.
“Have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.” – Steve Jobs
And so it begins.
A new beginning. A pursuit of passion. A pursuit of investing excellence.
In 2016, we are marking the official launch of Richie Capital Group.
RCG, is a firm focused on providing superior equity returns for our clients. Our initial offerings will include discretionary investment management services for High Net Worth and Institutional Investors. Additionally, we will provide investment advisory and financial planning services on a limited basis.