We are two weeks (a “fortnight” for all you tennis/Wimbledon fans) into the life of Argyle Capital Partners (ACP) and I wanted to post an update on all the most recent developments. The first two weeks were spent largely on communicating with all of you, getting paperwork together in order to “link” your accounts with ACP, and finalizing relationship details with Charles Schwab and Morningstar Office. We are right on schedule and this week I will be contacting each of you to ensure your online experience (with both Schwab and Morningstar) is uninterrupted.
Last week — the final week of the first half of 2012 — represented a welcome momentum shift for the markets, and I’m sure for all of you. Bad news and no news out of Europe on a daily basis gets a bit stale, but can only last so long. It helps to be positioned well for weeks like this, but no one ever quite sees them coming. Why is that? Why are market rallies and corrections so hard to predict?
In order for markets to rally as they did this week, prices must have become overly depressed based on a flurry of negative news and sentiment. Negative news and sentiment don’t make for a traditionally optimistic mood from investors, which is how prices get lower than they “should” be. In order for stocks to come down hard, they must have been “too” high to begin with, and in order for them to move sharply higher, they must have been “too” low. Part of my job is to suss out these bi-polarities and, in a measured way, prepare you for them.
The stock market is like a child that is powered by sleep and sugar, overreacting to both the good and the bad. Like the child, the stock market is running at full tilt one moment, then napping in the backseat the next time you turn around; and after a pixie stick, he is off to the races….
I look forward to speaking with you all this week!!
Adam B. Scott
Argyle Capital Partners, LLC
10100 Santa Monica Blvd, #300
Los Angeles, CA 90067