January 2011 Viewpoints 

Buy then Hold or SellBuy then Hold or SellBuying a stock is the easy part of stock ownership. The real challenge arises afterwards. Now the investor faces two decisions to make, but now with invested capital on the line. To help mitigate the challenges of stock ownership it would be prudent to:1) Know what risks comes with the company and its industry2) Understand the key growth drivers of the company and industry3) Remove any emotional ties or biases on the company) y p y4) Know where we are in the current business cycle5) Have an exit strategy6) Practice discipline

Defend thy currencyS l d l i ti b ttli h i th i i t t t d i t bilit T h l b tSeveral developing nations are battling a sharp rise on their currencies to support exporters and economic stability. To help combat currency appreciation several tools are being utilized among them are:1) Taxing capital inflows and imports2) Lowering interest rates3) Purchasing US Dollars on the futures market4) Increasing caps on foreign investments5) Requiring addition deposits on foreign  investments

Lost Decade in the S&P500– 2000s Total Return -0.95%2000

S&10/9/20071565 15

3/24/20001527 46

500

1000

1500S&P 500 during the last cycle &

currentcycle

1565.151527.46

10/9/2002776 76 3/9/2009

12/31/20101257.64

‐49.147% ‐56.775%85.896%

101.150%

Views presented are as of January 20, 2011 and are subject to change based on market conditions and other factors. These views and for informative considerations and should not be construed as a recommendation, either expressed or implied. Past performance is no guarantee for future results.

0

cycle 776.76 3/9/2009676.53

Source: Standard & Poor’s