Investment Commentary - Martone Capital
from:Martone Capital Management, Inc. category:Business and Professional posted:October 13th, 2008
As you know, financial markets have been thrown into turmoil in recent weeks. We received many phone calls last week asking if we think we are close to a bottom in the stock market. We have felt that we have been close to a short-term bottom for a while now, but the actual bottom is difficult to predict. What we know is that last week we saw quite a bit of panic selling by hedge funds, mutual funds and individual investors. With the S&P 500 down 47% from its October 7, 2007 high, a relief rally was a strong possibility. After large weekly S&P 500 declines, research shows an almost 80% probability of an advance over the following week and a 70% likelihood over the next month. One of the independent research firms we use indicated that 10 of their 12 “stock market bottom indicators” have now dropped into place. We recognize that all of this is very scary, particularly the speed at which the market has declined. But, it is important for investors to understand that the selloff last week had all the earmarkings of a panic. When the above referenced facts are combined with the bailout package that has now focused upon ways to make capital available to troubled banks, we feel the market should have an upward bias through the end of the year. We welcome your comments and questions. Until next week. William A. Martone - President CLU, ChFC Michael C. Martone - Registered Principal William Martone is President and Senior Portfolio Manager of Martone CapitalManagement, Inc., which was founded in 1994. Bill has over thirty-five years of experience in the financial services industry and manages portfolios for both individual investors and pension funds using multiple investment strategies. Bill is a Chartered Financial Consultant, Chartered Life Underwriter, and New York State Registered Investment Advisor. He is frequently quoted in the Westchester Journal Business News as well as other publications. In May 2000 Bill was featured on CNNfn. * The information contained herein is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. All expressions of opinions are subject to change without notice. Martone Capital Management, Inc. does not believe this information alone is reasonably sufficient upon which to base an investment decision.
