2006 Capital Markets Outlook - October 31, 2005

 

Our thoughts on the economy in 2006 and how we derive our capital markets outlook.

 

 

Impact of Katrina - September 16, 2005

 

No one could have anticipated the tremendous devastation brought on by Hurricane Katrina.  Lost homes, lost lives, a lost way of life -- the impact of Hurricane Katrina is more than anyone could have ever imagined.  When the floodwaters recede and people start to rebuild, we will have a better understanding what to expect in the near term. 

 

 

The Impact of the Energy Policy Act of 2005 - August 16, 2005

 

On August 8, 2005, President Bush signed "The Energy Policy Act of 2005," a 1700 page bill guaranteed to make anyone's head spin.  You've all heard the media accounts of what is in the bill, so we will focus on its impact to various industries and our portfolios.

 

 

First Half 2005 Review - July 8, 2005

 

The financial markets produced uneven returns during the first half of 2005.  Concerns over rising short-term interest rates and slowing economic growth kept equity investors in a relatively bearish mood, resulting in modest or no gains for the average investor.  However, long-term interest rates remained at much lower than expected levels and provided the stimulus for solid gains in interest rate sensitive assets, such as investment grade bonds and REITs.

 

 

The Interest Rate Conundrum - April 18, 2005

For anyone without access to a Magic 8 Ball, the interest rate environment has certainly been difficult to decipher over the past 12 months.  Although the Fed has been successful in raising short rates, investor expectations for the ability of the Fed to manage inflation were not changed and the yield curve has flattened as a result.  However, as recent market events show, we have seen a dramatic reversal in risk appetites and inflation expectations.   

Dollar Daze:  The Impact of a Weaker Dollar - November 9, 2004

 

Investors are faced with a number of concerns these days, including slowing economic growth, uncertain corporate earnings, high oil prices and terrorism.  However, a less heavily discussed, but equally important, risk is the weakness of the U.S. dollar. 

 

 

When Perception Clashes with Reality:  The Case for Overweighting the Energy Sector - September 15, 2004

 

As a Texas-based company, it only makes sense that we have historically been big believers in the opportunities available in the energy sector.  Our timing hasn’t always been perfect, but our willingness to be patient and disciplined has allowed us to consistently profit from our energy investments.  We’ve also been known to go against the crowd when we deemed it prudent to do so.  Today we find ourselves in a similar situation. 

 

 

The Next Great Investing Opportunity:  Dividend Payers and Global Industrial Firms - July 21, 2004

 

One of the key reasons for the stock market’s lethargy over the past several months has been investor concern over the pace of future growth.  The greater than expected rise in earnings and economic growth was a significant factor in the market’s robust rally in 2003.  However, as investors begin to factor in higher interest rates, rising inflation, and the unsustainability of the rapid growth seen over the past 12 months, they have seriously begun to question the source of future market gains.

 

 

First Half 2004 In Review - July 8, 2004

 

What forces have driven the markets this year?  What is the outlook for the second half of the year?  Most importantly, how did Westwood perform?  These questions are addressed.

 

 

Rational Exuberance - May 26, 2004

 

The surprising 2003 rally in low quality stocks led many market pundits to deduce that investors had gone 'crazy' or returned to their irrational, bubble year ways.  However, given the results of the past two months, we are happy to report that the rational investor has made a triumphant return and now appears to be dictating the course for stocks.

 

 

Westwood Strategy Update:  Reaffirming Our Belief in "The 3 C's" - April 16, 2004

 

Westwood reaffirms our belief in commodity price strength, climbing interest rates and inflation, and corporate spending over consumer spending.

 

 

Declining Risk Appetite - February 25, 2004

 

We believe the market's risk appetite has been declining since December 2003.  Here, we illustrate that there has been a shift from expensive high risk areas to defensive less risky areas.

 

 

Westwood Road Map for 2004 - January 20, 2004

 

In 2003, the best performing strategy came from buying low quality companies, but December may have marked the beginning of the long anticipated rotation toward quality.   As prices for various fundamental risk levels are rationalized, we believe our portfolios are well positioned to benefit from a search for high quality in 2004.  We have outlined what we are seeing and what could be an ideal combination of factors for our portfolio strategy in our road map for 2004.

 

 

Bubble II? - November 2003

 

Is today's stock market reminiscent of the 90's bubble and doomed for a crash?

 

 

Rationalizing Reality - October 2003

 

Through much of 2003, the best performing strategy has been one focusing on the riskiest companies.  In contrast, the most fundamentally strong companies have posted only modest gains throughout the year. 

 

 

Ode to PIMCO - October 2003

What dividends can do that bonds can't.  (Updated October 2003)

Treasuries May Come And Go, But Dividends Are A Girl's Best Friend - August 2003

The attractiveness of dividend paying securities relative to fixed income securities.

 

Risky Business - July 2003

 

Recognizing the real value in a challenging market environment.

 

 

The Jobs and Growth Tax Relief Reconciliation Act of 2003 - June 2003

 

A summary on the new "Dividend Tax Cut" and how it affects Westwood portfolios.

 

Is the Stock Market Ever Going to Recover? - April 2003

 

Westwood's look at historical markets, the current market situation, and the long term.

 

 

Top Ten Reasons Why the Market Could Rebound in 2003 - February 2003

 

Our reasons why the market could rebound.

 

Dow 30 Free Cash Flow - January 2003

 

On January 9, 2003, Susan Byrne appeared on CNBC's Squawk Box.  To view information on Dow 30 Free Cash Flow, click here.

 

 

Consistent SmallCap Growth Management In Good Times and Bad - January 2003

 

Westwood is pleased to announce that Chris MacDonald has been promoted to Portfolio Manager of the Westwood SmallCap product and the Gabelli Westwood SmallCap Equity Fund.  Chris has worked on the product since its inception in 1994.  Click here for his thoughts about the smallcap product and the market over the next three years. 

 

Westwood's Perspective on the Economy - October 2002

 

Our case for modest growth in 2003.