We are pleased to announce the launch of our new website. You can still find it at www.kesslerig.com. What you will notice is a look and feel that is fresh. As always, you will find an archive of our recent commentaries, biographical information and some photos of our beloved Columbus architecture. We hope you find the website a useful resource.
While we have your attention, we would also like to give you a quick update on our view of the markets.
The 3rd quarter is historically a weak part of the year for equities. With this in mind, we have sold a few stocks in our managed accounts so as to have cash available to invest in the event the broader market declines. Performance in our managed accounts so far this year has been solid and we do not want to unduly relinquish the results we have delivered. It is important to emphasize, however, that we remain more invested than not.
It is also worth noting that we see a number of positives lining up for equity prices beyond the election. Believe us when we say that our optimism is not tied to a view that either candidate exhibits rare leadership qualities or an essential understanding of economic ills that plague the U.S.
Our optimism is tied to the unprecedentedly low expectations set for these candidates. In our view, expectations are so low there is actually a good chance that either candidate would exceed them. Specifically, the expectations that they will derail the economy is greater than that they will boost the economy. This set-up appeals to our contrarian nature because the president is just one person and will not move the economy forward or backward on their own. The rhetoric of the campaign trail rarely turns into policy. Even when campaign promises turn into policy the final version has been watered down enough to pass through both houses of Congress.
So, we remain cautious over the near term but very optimistic over the next year and beyond that we will see noticeably higher equity prices.
Sincerely,
Kessler Investment Group, LLC