The following are highlights from the Fourth Quarter 2009 issue of Investments: The View From Lowry Hill, our quarterly investment newsletter providing insights about the markets and the economy:

• Year-to-date stock prices are up significantly; corporate America was actually better positioned to handle the downturn than investors realized.  Given the possibility of more upside earnings surprises, we anticipate a continuation of favorable returns over time.
• The broad market average is up sharply in 2009.  However, there has been wide variation in individual stock performance.  Opportunity remains to upgrade holdings, as it has been the more speculative, smallest companies that have had the strongest performance this year.
• A genuine pick-up in consumer spending seems critical to growth in the economy.  Higher-income consumers account for a significant portion of discretionary spending, and their net worths are more tied to the stock market and private businesses than lower-income groups.  The improvement in stock prices may benefit the higher-end consumers and have a disproportionate impact on overall consumer spending.
• There are ways to position portfolios to minimize the impact of inflation.  Certain companies have pricing power and are able to grow their earnings in excess of inflation. 

Articles

Speeches

Financial Planning:
The View from Lowry Hill

Investments:
The View From Lowry Hill

2010 Annual Client Letter [pdf]

Past issues of Investments: The View From Lowry Hill