Research Outlook 2007 Economy Stocks International Bonds Market Studies

Research
At its broadest terms, our research is usually geared with one of two major aims. First is to identify the risk levels of the stock and bond markets. The second aim is to choose the best available securities.

Each year a major effort is placed on discerning the long-term path of the economy, stocks, bonds, and international markets. This gives us guidance in determining whether markets are giving us opportunities to buy or sell or whether a recent movement in the market is simply fool’s gold. Then, the risk levels of the market are assessed every weekend with the help of our validated market risk indicators. Presently, we have over 100 separate market risk indicators. Each indicator is classified as favorable, neutral, or unfavorable. While no one indicator is deemed to be perfect, it is normal for the summation of the indicators to provide guidance for the future.

Likewise, we are also concerned about individual stock selection. Over the years we have developed and extensively researched and tested our stock selection model. This quantitative model is used to provide guidance on an individual stock’s attractiveness. We have found over the years that this model does a good job in highlighting buy candidates, but perhaps its best value comes with helping in our sell discipline. If a stock our client owns shows up poorly in our model the security will be reviewed by the investment committee for possible sale.