Martin Capital Management: Fireside Chat No. 6 – August 12, 2009
“Are you not aware we are in a raging bull market?” That was the question from a businessman with whom I had a chance encounter when he learned that the typical Martin Capital Management portfolio is hunkered down in short-term U.S. Treasury bills—some 60% of all assets the firm manages. For each person who speaks his mind, there are many who do not verbalize what may well be similarly skeptical thoughts, their facial expressions doing the talking for them.
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Returning to the opening question, the answer is yes, we are keenly cognizant of the market’s upward trajectory of the last four months. Seven days a week we are inundated with financial news and market prices. We also are aware of the near ubiquitous approval of its advance (besides the squeezed short seller, we’ve heard nary a peep of disapproval from anyone). At the same time, we have noticed that the thinning crowd of naysayers is slipping into the shadows. By all appearances, the markets appear to be telling us that the green shoots are for real.
Just perhaps—now going way out on a limb—the financial crisis and economic contraction should not be the primary objects of our attention. Could we be looking in the wrong place?
