Long-Term Outlook

By John Fox

The stock market has performed well for the last couple of years, however many people have exited equities. In fact, investors have put billions of dollars into bond funds due to fear from global news.

Meanwhile, we are still bullish on stocks over the long term. What people tend to forget is that corporate earnings ultimately drive stock prices. It might surprise you to know that 2011 was the best year in history for earnings. Financially strong corporations increased profitability despite economic challenges. Currently, we expect the majority of our holdings to grow their economic value over time and believe that this will eventually be reflected in their stock prices.

What makes us enthusiastic about investing in equities today is the long-term potential of the businesses we hold.

Please see Fenimore disclosure.