General Commentary Despite COVID-19 the U.S. equity markets moved higher during the third quarter. The presence of government stimulus, the prospects for a vaccine, and expectation of additional stimulus, continued to provide a positive environment for equities. More recently the equity markets have become outright jubilant in response very positive vaccine news. While the vaccine […]

General Commentary Since our last update we have seen the intensity of the initial COVID panic fade and an unfortunate new normal set in. We are witnessing a few industries stabilize but we have also seen large swatches of the economy continue to suffer. The numerous government stimulus plans have provided some stabilizing force; however, […]

General Commentary The first quarter of 2020, and thus far for the month of April, will be remembered for many firsts. I do not want to use this letter to review the events that have been so widely reported. Instead, I would like to focus on the actions we have taken as it relates to […]

General Commentary Our investment results across all asset classes were strong in 2019 and as a firm we had a particularly active year: Equities Purchased 12 new equity positions and sold 11. Fixed Income 8 bonds were sold due to early calls. One new bond position added. Real Estate Closed three new investments and exited […]

General Commentary The drum beat of negative news grew louder through the third quarter, but this did not deter US equity markets. The major indexes slowly pushed higher through the quarter and continued to do so through late October. The items on my worry list have not changed since the Q2 letter and continue to […]

General Commentary Thus far in 2019 we’ve seen strong returns from our equity, fixed income, real estate and private equity investments. As we look across the investment landscape it’s become increasingly difficult to separate signal from noise. It’s like trying to tune a very old radio, one of those that required the dial to be […]

General Commentary After a turbulent end to 2018 the US equity markets enjoy a strong start to 2019. A more friendly tone from the Federal Reserve in December was fully embraced by U.S. equity markets and pushed indexes higher as the quarter progressed. It’s hard to believe that in early December the Fed bias was […]

General Commentary By any measures Q4 2018 was the most turbulent, volatile and financially challenging period since 2011. From its peak in early October, to the lows in late December, the SP-500 Index declined a little over 20%. The damage was far more extensive for small/mid cap stocks, with declines approaching 30%. Further, the bond […]

General Commentary It has indeed been a busy quarter. On September 16th we announced the acquisition of Messner & Smith, a San Diego based investment management firm. For the past 34 years Messner & Smith has been investing client assets with a value driven philosophy very similar to Carmel Capital. The firm places a high […]

General Commentary After a turbulent first quarter the equity markets resumed their orderly weekly increases. Despite the growing threat of a large-scale trade war and increasing geopolitical uncertainty, the US equity markets continue to progress as if all is alright in the world. The large-scale tax reform that occurred in 2017 has now found its […]