Please note that Ron Humenny and Starfire Investment Advisers, Inc. are not affiliated with, are not compensated by and do not endorse Flagstar Bank or any other sponsors of our daily WJR reports.
December 31, 2004
This time of year the airwaves are filled with the “expert” predictions of what investments will outperform in 2005. Before you waste any time or money paying attention to these prognostications, think about the “conventional wisdom” of a year ago.
It was pretty much agreed that since short-term interest rates were headed up, long term rates would follow suit, as bond investments would get crushed. Didn’t happen. Long term rates stayed pretty much in place. Bonds weren’t great, but they weren’t a disaster.
It was pretty much agreed that small cap stocks had outperformed for so long, that the large-cap, dividend-paying stocks were the place to be. Uh-uh. Smallcaps again trounced largecap throughout...