January 2006 Letter
Investment Background
This is a two-part investment letter. First, as we begin the New Year, the attached "Investment Background" summarizes our thoughts on the major trends impacting the markets. As always, the challenge is identifying the forces that will dominate in the coming year. For now, we look for a continuation of a range-bound stock market and emphasize a neutral, diversified position in stocks, plus an allocation to high quality short/intermediate-term bonds.
Letter
The second part of this letter is a New Year's present for your children or grandchildren. It preaches the importance of money, how to accumulate a nest egg, and some thoughts on managing investment funds. In sum, "Bean Counting, Compounding, and the Rules of the Investment Road."
All of us at Covington wish you and your family a healthy, happy, and prosperous 2006!
Back to Commentary
