February 2010: Certainty in an Uncertain World


The recovery in the global equity markets is approaching its twelfth month. It was, after all, March 9, 2009 when the Dow Jones Industrial Average hit a low of 6,547. The magnitude of the unexpected credit crisis caused heavy selling of equities globally. To date however, a chart plotting the recovery resembles a “V” rather than the “W” or even “L” that some predicted, representative of the 63% rally in the Dow through the end of 2009. Long-term investors, including clients of Greenwood & Associates, have benefited from the resurgence – a function of resiliency in the face of panic and decisiveness when the market presented opportunity. Still, short-term uncertainty remains – it is ever-present. Warren Buffett put this in context in a recent interview when he said: “There was a lot of uncertainty on September 10, 2001, investors just didn’t know it.” This is the reality of the world in which we live and invest.

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