By a narrow margin, British voters surprised markets overnight by voting ‘yes’ on a referendum to leave the European Union (EU). The highly charged debate on this issue largely centered on both the economic costs and benefits of being a part of the single market, as well as the open border policies that membership requires. By voting to leave the European Union, an unprecedented process has begun that may take years to complete. During this transitional period, trade agreements will need to ... [Continue Reading]
Updates and articles on timely topics from the Investment Team.
This week's Recommended Reading is from Yahoo! Finance and discusses how the simple reorganization of the Russell Indexes may cause the price of Apple’s stock to decline over the next week. Shares of world’s largest company by market cap, already down more than 8% this year, may fall further as index fund managers are forced to sell roughly $1.3 billion of the stock at Friday’s market close in order to reflect upcoming changes in one of the most widely tracked stock benchmarks. The driver of ... [Continue Reading]
If you’ve read more than a few of our investment updates or insights over the years, you know that focusing on the long-term is essential to CCM’s investment philosophy. A myopic view of markets and returns may lead to adverse consequences for an investor’s financial well-being. More often than not, this is due to an overly strong reaction to recently occurring events (that quickly reverse) or from stumbling onto what may be perceived as an easily identifiable pattern in market data. This leads ... [Continue Reading]
For our Investment Insight this quarter, the chart featured below presents the opportunity to consider the concepts of average market returns, after-tax real returns, and needed returns, while reminding ourselves of what might otherwise seem counter-intuitive.What may be counter-intuitive to us as investors is that annual returns are almost never average. Coming out of 2015—a year in which three of four quarters were significantly positive—demonstrates how the experience we “felt” the majority ... [Continue Reading]
"It’s tough to make predictions, especially about the future." – YOGI BERRA This past quarter marked the passing of the only major leaguer to have won a World Series ring for each of his fingers. Along with that honor (and many other incredible feats as part of the greatest dynasty in modern sports), Yogi Berra was also known as one of sports’ greatest “philosophers.” Since his death, there have been numerous pieces written reflecting on the best of the best “Yogi-isms” —connecting them with ... [Continue Reading]