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“Que Sera, Sera”

“Que Sera, Sera” is the title of a song made famous by Doris Day in 1956.  Investors might note the song’s chorus.  “Que sera, sera, whatever will be will be, the future’s not ours to see, que sera, sera, what will be, will be.” Despite the seemingly never ending prognostications, by “experts”, both bulls and bears, […]

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Backseat Driving Your Portfolio

With many of the world’s stock indices hitting all-time record highs, it comes with no surprise that many investors are wondering if now may be the time to lock in profits, sit on cash and attempt buying into the next market downturn. This is defined as market timing. Sigma’s belief is that it is very […]

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Do Costs Determine Prices?

Conventional wisdom generally suggests that when costs rise, price increases follow.  Most of the time, this may be accurate.  However, investors should investigate carefully before jumping to a conclusion.  Sometimes costs adjust to reflect prices rather than the other way around. An interesting case in point is the oil industry’s reaction to a major decrease […]

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Are Real Wages Finally Firming?

We have previously commented on the issue of lackluster U.S. economic growth.  (See our blog from  Jul-12)  Among the possible causative factors, relatively modest gains for real wages has been highlighted by many economists. We have seen unemployment steadily decline to near record lows.  At the same time, we have not seen much in the […]

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Reversion to the Mean

Mean reversion is the theory suggesting that prices and returns eventually move back to the mean or average.  This mean or average can be the historical average, or another relevant average, such as growth in the economy. Applying this theory to the major stock market indices, such as the S&P 500 and the Dow Jones Industrial […]

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Infrastructure

Infrastructure is defined by the “American Heritage Dictionary” as the basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post office, and prisons. Historically, politicians have tended to give infrastructure spending short shrift while favoring social […]

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