In the movie, “Back to the Future”, Marty McFly found himself back in time where his future parents were still in high school. The rest of the movie was spent trying to get Marty “back to the future”. Fast forward to today and we find many examples of back to the past where smaller seems better.
For example, North Carolina passed a law aimed at the micro brewing beer industry, legalizing consumption on premises, regardless of local laws. So, for the first time since Jean & I moved to WNC, we were able to sit down and have a hamburger and a beer in Old Fort, a dry town. (The place was packed)
I thought the attached article talked about what could be a harbinger of things to come. The classic definition of capitalism is “Creative Destruction” where new technologies and new startup entrepreneurs challenge the current model and offer a product or service that taps into the wants and needs of customers. Think the horse & buggy to the automobile to the electric automobile or the rotary dial telephone to the iPhone.
Stocks for the week were down with the S&P 500 and the DOW both down about 1%+ and the NASDAQ dropping 3.7%. For the year, large capitalization growth stocks are up almost 10% while large cap value stocks are down 16.26%. Dividend yields continue to outperform the 10-year treasury yields by a very large margin while there is over $16 trillion sitting in banks and money markets. Winning Points Advisors, the portfolio manager for the WP funds continues to focus on large cap value stocks with increasing dividends. The old saying “Don’t fight the Feds” seems to still be holding up with the promise of at least another $1 trillion on the way and probably much more.
Since I don’t make predictions, I’m not sure how and where this is all headed but continue to focus on equities for the long haul As always, should you have any questions or wish to talk and/or meet with me, please don’t hesitate to email, or call.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.