Altavista Wealth Management
  • Client Login

866-684-2600

  • Our Approach
  • Our Services
  • Our Team
  • News & Insights
  • Resources
  • Contact Us

Developed in conjunction with Ext-Joom.com

 
Altavista Wealth Management
  • Client Login

866-684-2600

  • Our Approach
  • Our Services
  • Our Team
  • News & Insights
  • Resources
  • Contact Us

Developed in conjunction with Ext-Joom.com

  • Our Approach
    • Managing Your Investments
      • Setting objectives
      • Asset allocation
      • Meaningful Diversification
      • Security Selection
      • Supervising Concentrated Holdings
    • Planning Your Finances
    • Preparing Your Estate Plan
      • Encouraging family stewardship
      • Managing trusts
      • Estate planning
    • Selling Your Business
    • Giving To Charity
      • Investing charitable funds
      • Setting up charitable trusts and foundations
      • Working with community foundations
  • Our Services
    • Portfolio Management
    • Asset Deployment and Allocation
    • Trust Administration and Fiduciary Services
    • Financial Planning
    • Family Office Services
    • Third-party Services for Legal and Accounting Practices
    • Women in Conversation
  • Our Team
    • L. Daniel Akers, Jr.
    • Kyle R. Boyd
    • Karen G. Coble
    • Jacqui S. Friedrich
    • Logan Bolick
    • Mari Panzenhagen
    • Christine B. Nelson
    • W. Edmond Zorigian
    • Sallie Williams
    • Jeff Howden
    • Jonathan E. Shumate
    • Mary Margaret Burdett
  • News & Insights
    • Outlook
    • Newsletters
    • Market & Economic Review
  • Resources
    • Market Data
    • Stock Quotes
    • Calculators
    • Web Resources
    • Financial Briefs
  • Contact Us

News & Insights

  • Quarterly Investment Outlook
  • Newsletters & Articles

Archives

  • 2017
    • Winter 2017
    • Spring 2017
    • Summer 2017
    • Fall 2017
  • 2016
    • Winter 2016
    • Spring 2016
    • Summer 2016
    • Fall 2016
  • 2015
    • Winter 2015
    • Spring 2015
    • Summer 2015
    • Fall 2015
  • 2014
    • Winter 2014
    • Spring 2014
    • Summer 2014
    • Fall 2014
  • 2013
    • Winter 2013
    • Spring 2013
    • Summer 2013
    • Fall 2013
  • 2012
    • Winter 2012
    • Spring 2012
    • Summer 2012
    • Fall 2012
  • 2011
    • Winter 2011
    • Spring 2011
    • Summer 2011
    • Fall 2011
  • 2010
    • Winter 2010
    • Spring 2010
    • Summer 2010
    • Fall 2010
  • 2009
    • Winter 2009
    • Spring 2009
    • Summer 2009
    • Fall 2009
  • 2008
    • Winter 2008
    • Spring 2008
    • Summer 2008
    • Fall 2008
  • 2007
    • Winter 2007
    • Spring 2007
    • Summer 2007
    • Fall 2007
  • 2006
    • Winter 2006
    • Spring 2006
    • Summer 2006
    • Fall 2006
  • 2005
    • Winter 2005
    • Spring 2005
    • Summer 2005
    • Fall 2005
  • 2004
    • Winter 2004
    • Spring 2004
    • Summer 2004
    • Fall 2004
  • 2003
    • Summer 2003
    • Fall 2003

Winter 2012

A New Year

 

It is our hope that 2012 represents the year when the co-mingling of politics and markets reaches its peak and begins to recede. After the election of the U.S. president in November, the demagoguing of important issues such as government deficits, appropriate tax policy and the management of global trade policy can leave the hot campaign spotlight and move to quieter halls in Congress and the Executive branch. Perhaps this will result in a process which will adopt some sane, sustainable basis of taxing the people and spending their money.

Stabilization of the uncertainty that has characterized government policy since 2008 will, in our view, provide business with the confidence to invest some of the record trillions that corporate America has on its balance sheet, perhaps improving on the sub-par growth that has characterized this recovery. But it is a long time to the election in the fall, and as someone once said “Money never sleeps.”

Early in 2012, there are some reasons to encourage your inner optimist. The U.S. economy is slowly improving, its pace retarded by the need to repay the trillions of unproductive debt built up in the boom years. The profitability of U.S. corporations has never been higher and analysts are calling for growth in profits (albeit slowing) again in 2012. Interest rates are low and will likely remain that way for the foreseeable future. The stock market is reasonably priced.

In our view, the major risks to markets stem from abroad. The European debt crisis continues to roil markets and there is no “magic bullet” which will slay the threat. The second major risk is the transition which is taking place in the developing markets as places like China turn from an export driven model toward a more domestically focused policy. It would be naïve to plan for these international risks to resolve themselves without some surprises in the months and years ahead.

An emphasis in high quality large cap U.S. equities (a position we have flogged for years) was beneficial in 2011 and, in our view, will be even more beneficial in 2012 than in 2011. The U.S. as a safe haven for foreign capital flows should continue to be a factor early in the year. We acknowledge that values are compelling in Europe and in the emerging world and we expect to upgrade these markets in client portfolios if a benign outcome to current economic issues plays out.

On the fixed income front, treasury bonds are wildly overvalued and the puny yields offered by government securities will necessarily climb. However, the “safe-haven” offered by U.S. bonds will support the maintenance of these low yields until some resolution of global markets appears on the horizon. Some investment grade corporate bonds, municipals and even selected “junk” bonds look attractive relative to Treasuries.

While we remain cautious, we believe a more growth-focused investment policy may be in the cards as 2012 progresses.

The Altavista Investment Team – Winter 2012


 

    

  • Contact Us
  • Site Map
  • Policies & Disclosure
  • Altavista Brochure

4 Vanderbilt Park Drive Suite 310 Asheville, NC 28803
6201 Fairview Road Suite 322 Charlotte, NC 28210

© 2018 Altavista Wealth Management, Inc.

866-684-2600