Posted in BCM in the News on March 11th, 2010
August 6, 2008 – Beck Capital was 50% cash and Frank suggested avoiding banks. He said there would be choppy waters for 6-8 months while the adjustable-rate, subprime loans that were written from September thru December in 2006, would be adjusting from their 1% levels to 7% and the loans had grown while the home values shrank. The S&P 500 was at 1283 that day and exactly 7 months later it bottomed at 667. In March of 2008, while the government began a near trillion dollar stimulus, Frank wrote a Forbes article (see March Forbes) proclaiming the massive government spending would inflate all markets.
September 11, 2008 – Still liking cash, WMT, MCD, YUM (for growth in Asia) and avoiding the consumer
November 12, 2008 – “tip-toeing” back into the market, we are buying companies below book value or at very low price-to-book, with continuing strong earnings and buying very discounted bonds.