Taper and Move On

I understand it is asking a lot, but my wish this week is for the Federal Reserve to gut it up and start withdrawing from the bond purchase program ASAP. I am really tired of listening to numerous economists opine about the Fed minutes and Jackson Hole assemblage to provide some Sherlock Holmes like discovery that the listener and investors can’t figure out on their own. Personally, I believe the longer the Fed allows the market to meander along without a decision the more harmful it could be on market stability and behavior.

As we approach the Labor Day holiday we will again be prone to news headlines about Syria, China economic data, and the dreaded taper talk. Let’s hope there is some amazing unexpected merger announcement to digest this week because left to our own devices we will likely just limp along without much reaction up or down. Amgen announcing a deal to buy Onyx Pharmaceuticals is a good start. Hopefully, a few more could add an unexpected spark.

One group that I think represents good current value is the energy sector. While the energy stocks as a sector were big winners several years ago they haven’t actually been on anyone’s favorite buy list for quite some time. Growth stocks don’t always have to come from technology and consumer discretionary sectors. Energy stocks that can deliver new reserves from exciting new discoveries can deliver growth that can push exploration and production companies higher along with their energy service compadres. Growth is growth. And, I believe investors will buy good energy companies if they believe their growth is durable and consistent. Finally, as the temperature continues to rise around Syria, I expect oil prices to stay stubbornly high through the end of the year.

So, during this last week of August I will look for opportunities to pounce on good values that come along and trim where it is necessary.

It’s gonna be a long Monday
Sittin’all alone on a mountain
By a river that has no end
It’s gonna be a long Monday
Stuck like the tick of a clock
That’s come unwound—again
And again

Free lunch to the first to recognize the singer and album from one of my favorite performers!

Have a great week and do something nice for someone. It will make your day.

Roger N. Steed

August 26, 2013

 

KRS Capital Management, LLC (“KRS Capital Management” or “Adviser”) is a fee-only Office of Financial and Insurance Regulation registered investment adviser located in the State of Michigan. KRS Capital Management does not receive any compensation from any of the mutual fund companies, brokers or entities connected with securities mentioned herein. KRS Capital Management and its representatives are in compliance with the current notice filing requirements imposed upon the Office of Financial and Insurance Regulation registered investment advisers by those states in which KRS Capital Management maintains clients. KRS Capital Management may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements.

KRS Capital Management’s newsletter services are limited to the dissemination of general information that is financial and/or investment related to United States residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the content in this newsletter should not be construed by any consumer and/or prospective client as KRS Capital Management’s solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice for compensation via this medium. Furthermore, the information resulting from the use of data or other information in this newsletter should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from KRS Capital Management. Any products mentioned in this newsletter may not be eligible for sale in some states or countries, and they may not be suitable for you. Before buying or selling any mutual fund, exchange-traded fund, security, or investment, read the prospectus carefully. KRS Capital Management is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

*KRS Capital Management’s newsletters may contain opinions and statements concerning or related to securities and investments. The Adviser does not represent, endorse, or warrant the timeliness, sequence, accuracy, or reliability of any such information. Certain portions of KRS Capital Management’s web site and publications (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, the Adviser’s (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from the Adviser or from any other investment professional. Where individual companies or types of investments are named herein, it is for representational examples only are not in any way to be construed as securities recommendations. KRS Capital Management cannot and does not give any assurance that the companies that may be included in our newsletters, present or future, will be profitable. Owners and staff members of KRS Capital Management may own various investments (included those that may be listed in our newsletters). Any one or more of their positions may not necessarily be the same as that of a client of KRS Capital Management. The owners and employees of KRS Capital Management may also for their own accounts buy, sell, or hold long or short positions in mutual funds, exchange-traded funds, common stocks or other securities of companies mentioned in the Adviser’s publications. Investments carry an inherent element of risk, including the potential for loss of principal. Please seek personalized and professional assistance from your personal fee-only Registered Investment Adviser before making investment decisions.

A copy of KRS Capital Management’s current written disclosure statement discussing KRS Capital Management’s business operations, services, and fees is available from KRS Capital Management upon written request. KRS Capital Management does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party incorporated herein and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Where general market data or statistics are provided herein, they are provided by sources that we have deemed to be reliable.

You may not use, adopt or attempt to register anywhere in the world, whether alone or together with any other mark, symbol, or name, any KRS Capital Management trade name or mark or service name or mark that is similar or confusingly similar to the KRS Capital Management trademarks. All other trademarks, service marks, brands, and names are the property of their respective owners.