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HLBGC to Host Seminar on Government Contracting

Government Contracting

The Good, the Bad and the Ugly
Federal agencies are outsourcing over 90% of their work.
To the civilian entrepreneur, this could represent additional work outside of the commercial market.
There are some key steps that MUST be accomplished when competing for Government contracts.

May 19, 2010
8:00 AM – 10:00 AM
Continental breakfast included

At the office of HLB Gross Collins, P.C.
3330 Cumberland Blvd, #900
Atlanta, Georgia

Presented by

Roger & Stacy Vaughn

&
HLBC Logo

 

Contact us for additional information or if you are interested in attending.

Market Watch – Is the Euphoria Over?

…For Now

The equity market has rallied relentlessly for 12 of the last 14 months.  But now it is facing headwinds that perhaps will be cause for another equity correction.  How deep, no-one knows.  During this 14 month rally, corrections have occurred just as the quarterly earnings season winds down, which is precisely where we are right now.  Will this pattern continue?

Make no mistake about it, based upon the last 10 days or so, since two Friday’s ago when the Goldman Sachs charges were announced, volatility is back!  The Dow Jones Industrial Average ended the week down 196 to 11,009, and the 1.8% loss was its worst since late January.  The S&P 500 Index had only its third loss in 12 weeks, losing 31, or 2.5%, to 1187, but is still up 75% from its 2009 low.  The Nasdaq Composite Index snapped an eight-week winning streak and closed down 69, or 2.7%, to 2461, while the Russell 2000 skidded 25, or 3.4%, to 717.  For the most part, 20-day moving averages of the major equity indices have been breached, but 50-day moving averages remain below their respective indices.  Despite the weak finish, stocks ended April with broad gains totaling 1.4% for the Dow, 1.5% for the S&P 500, 2.6% for the Nasdaq and 5.6% for the Russell.

Oddly enough, this volatility in equities comes as the news for the economy and companies in general, has been good!  This past week it was reported that the economy grew 3.2% from January to March, and has expanded for three straight quarters, and that consumer spending jumped 3.6%.  Buy the expectations (rumors), sell the news?

This past week, the FOMC met and released their “minutes”, stating that the economy is improving, but that they expect to keep interest rates very low for an “extended” period of time.

Look at the pattern of corrections in the equity markets beginning after the 3rd or 4th week following the end of the quarter.   You may want to consider putting your sell stops in place, if you have not already.

Is Buy and Hold the Best Investment Strategy?

Academic studies show that you should not attempt to time the market; you may miss the good times if you do.

This is the buy and hold proponent’s favorite argument.  Yet there is more to this study that offers another, very important point of view.  An investment in the S&P 500 Index for the period 1990 to 2008 in a buy and hold mode returned 5.0% annualized, yet if you missed only the 40 best days each year your returns would have been an annualized loss of -4.92%;  case closed, timing does not work.  Wait a minute!

Let’s look a little further.  If you had instead missed only the 40 worst days each year during that same 1990 to 2008 period your investment returns would have skyrocketed to 16% annualized per year, more than triple the rate of return of the buy and hold strategy.  What would happen to investment returns if you missed both the best and worst 40 dayseach year during that time period?  Interestingly, when missing both the best and worst 40 days each year in that 1990 to 2008 period the investment returns were still better than the buy and hold; only by a small amount, but better.  This is very interesting and here is the reason why:   It was associated with what we learned in fifth grade math class, that percentage losses require larger percentage gains to recover the losses.  To recover a 30% loss one must make 43% to get back to even.  Protect against large downside losses and perhaps over time I will have a better investment experience.  

Healthcare Reform and Washington – Sen. Saxby Chambliss, Rep. Paul Broun, Rep. Tom Price, April 21, 2010

  • Date: April 21, 201
  • Guest: Senator Saxby Chambliss, Rep. Paul Broun, Rep. Tom Price
  • Listen to show.

Today we have a different format for Gross Realty. We have assembled a group of leading local politicians to share perspectives and reactions regarding health care. I’m delighted and honored to have guests who represent the State ofGeorgia, Senator Saxby Chambliss, Representatives Paul Broun and Tom Prices. The entire show will be my interview with each of these local politicians. We will forego our weekly feature of The Good, The Bad and The Ugly to give all of our hour to our esteemed guests. Discussions focus on perspectives on the healthcare bill, what the challenges are and the next move.

With Senator Chambliss we will discuss:

Health Care Reform passed by House

  • Constitutional or not
  • Affordable – if so, how
  • Senate likelihood of passing (as is or fix it plan)
  • Can it be fixed or should it be repealed?
  • State’s attorney’s general – can they effectively change the bill

Job Creation Bill

  • Will it create jobs in private sector?
  • How to incent private business vs. government power and jobs
  • Progressives in power – our future
  • Conservatives opportunity to retake America for future opportunity

With Congressman Tom Price and Congressman Paul Broun we will discuss:

  • Healthcare Bill passed by the U.S. Senate – what next?
  • What do you think the next step will be going forward?
    • Repeal, fix or live with it?
  • Immigration back door?
  • Get services / no pay?
  • Talk about the public reaction and will that last and remain a factor through November?
    • Conservatives/independents up in arms
  • What is your vision of self reliance/have we reached a tipping point?
  • What will be the clear message of the Republican Party regarding being a compelling choice for the next election?
  • What are your goals and action items to achieve them?
  • What can constituents do to help work toward those goals?
  • No budget and out of control spending – no accountability?
  • Tax system – any hope to simplify?

Reading Assignment: 12 ways to cut your taxes, by Linda Stern.

Goldman Lawsuit Wrecks the Market … in one day.

The stock market has enjoyed 10 consecutive weeks of consistent upward movement and in one day the US Government lawsuit against Goldman Saks plays havoc on the markets.  The S&P 500 drops 1.6% in one day on April 16th.  The lawsuit stems from Goldman creating an investment product of Collateral Debt Obligations (CDO’s).  What is a CDO?  Having read many articles in the Wall Street Journal, it is still difficult to understand what a CDO is and how it works.  Yet many people invested in them and lost money.  The government files suit because these investors lost millions of dollars in this deal and one investment firm sold the investment short and made millions.

What is the lesson learned from this?  Don’t invest in anything that you do not understand.  If you are investing in an investment product, insurance product, hedge fund, etc., before you agree to put your money into it, make sure that you understand what you are investing in and how it makes money.  If you do not understand it, stay away.

Contact Richard Taylor for your investment planning needs or for additional information.

 

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS.  Investing in stocks, bonds, mutual funds and other investments involves risk, and may decline in value and are not insured by the FDIC or any other Federal government agency.

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