Market Analysis

Marin Group
Market Commentary

February 2021

In listening to the daily news stream, the “Wall of Worry” seems to be getting steeper by the week. The fact that the market continues to climb “it” successfully is a testament to how strong we believe the underlying fundamentals are. These fundamentals are not economic or earnings forecasts, they are indicators we follow that measure the buying strength and resilience of the dynamics of supply and demand occurring “in” the market. This is the essence of portfolio management. There are thousands of fundamental analysts out there with CFA and CPA designations that can give you valuations of companies and their opinion of how the earnings will flow in the future and we use their information in trying to find value in our investment selections. But, as in just about everything, timing is crucial. You might have the cheapest blue-chip stock in the world but if the overall market is not in the mood to buy stocks, it won’t go up. Our investment strategy is a top-down approach starting with the health of the overall market as measured by our indicators. We then look at each sector of the market and determine which one is showing relative strength and chart this trend to see if it is likely to continue. We then look at each stock in these industries to determine its value and how it is performing relative to its peers. From there, we pick what we anticipate will be the highest performing company (stock) in the highest performing industry.

The Marin Group knows our clients, their goals, and temperaments. We do not farm out any process to outside sources because we believe we can do the best job for you. Marin celebrates 25 years of service to our clients in 2021. We have grown not by acquisitions or mergers, but by word of mouth in the form of referrals and by investment performance. Gary and Dianne have a great symbiotic working relationship in that they each do the things they love and share the not as enjoyable, but necessary, tasks. We are lucky to have some of the finest people we know as our clients and we will continue to do our best to help you achieve your financial goals.

Gary and Dianne

 

This report is provided as a general market overview and should not be considered investment or tax advice or predictive of any future market performance.

Any security mentioned in this report may not be suitable for all investors. No investment mentioned in this newsletter constitutes a recommendation to buy, sell or hold a particular investment. Such recommendations can only be made on an individual basis after an assessment of an individual investor’s risk tolerance and personal circumstances. Past performance of any investment mentioned is not a guarantee of future performance. Statements regarding the investment concerns and merits of any company and fair market value computations are strictly the opinion of Marin Group. Employees of Marin Group and Marin Group clients may have positions and effect transactions in the securities of the issuers mentioned herein.