Invest Now or Wait for a Correction

The hardest time to make an investment decision is now.  Currently, the issue confronting prospective investors is the extent of the market recovery since the 2008-09 lows and whether it would be smarter to wait for a correction.  If the market does weaken, the new big question becomes, “how extensive will the correction be and … Continued

Investing in Natural Resources

A great deal of the debate over the perceived limitations of the world’s natural resources appears to reflect a lack of understanding of the difference between shortage and scarce.  A shortage is generally defined as not enough of something that is needed and scarce is defined as a small amount, not plentiful. Consider, Super Bowl … Continued

Bubbles, Bull and Bears

On May 15, 2014, the Dow Jones Industrial Average dropped 1.6%.  The decline was attributed to a bearish comment made by a well respected investment professional, David Tepper.  “I’m not saying go short, I’m just saying don’t be too fricking long right now,” he said. Another successful investor, Jeremy Grantham, wrote recently in his investment … Continued

Climate Change: The Useful Debate

It seems that a lot of the debate over climate change/global warming is in part centered around definitions and in part about grants and agendas. The useful debate should be, is it better to try to slow the pace of climate change or prepare to live with the “inevitable”? In an effort to clear the … Continued

Governments and Markets

Investors should consider that there seems to be an increase in the belief that the markets are getting it wrong and official oversight is essential to the national well being.  This can lead to problems for those who rely on the efficiency of markets in making investment decisions. Thomas Sowell, in his book “The Vision … Continued

Management Compensation

There has been an increase in media coverage of, what many view as excessive, compensation packages for CEOs and senior management, highlighted by the recent media attention given to Coca Cola’s proposed compensation plan, some investor objections and Berkshire Hathaway’s somewhat mystifying responses.  Clearly, this is a matter for investor consideration, but is not always … Continued

Alarmists, Deniers and Investors

The Wall Street Journal recently carried James Huffman’s review of Patrick Allitt’s new book, “A Climate of Crisis”.  Mr. Huffman’s opening paragraph is a concise summary of the dilemma facing investors. “Climate change has been the dominant environmental concern of the 21st century.  Public discussion of the topic is less an informed exchange of ideas … Continued

Wages and Revenues and Profits

The issue of a new minimum wage is back in the headlines with action contemplated in the Senate.  While much of the discourse is political, investors should recognize that businesses have different business strategies and that changes in wages are likely to be more material to some than to others. Differences in business models are … Continued

The World’s Policeman?

A recent Wall Street Journal review of a new book by Aiyaz Husain, “Mapping the End of Empire”, brings to mind the days of Britain’s role as the World’s Policeman.  “Pax Britannica” was a period of relative peace in Europe and the World (1815-1914), during which the British Empire became the global hegemon and adopted … Continued

Introducing Anthony (Tony) Basalla!

Sigma continues to experience regular growth in new clients and today we wish to introduce our new colleague, Tony Basalla.  Tony joined our Cleveland office on April 1st.  He has been serving clients as a portfolio manager for over 9 years and has the requisite experience and training to serve our new clients.  You can … Continued

Fear and Greed

In the investment community, short-term, sharp moves in the major stock averages are often attributed to rapid shifts in investor sentiment between fear and greed.  Fear of losing everything or underperforming versus the desire to always try to make a little more or not be left behind. This is probably as good an explanation as … Continued