Dearborn Partners-Third River Quarterly Update
Dearborn Partners-Third River released their quarterly update today, providing analysis and insight into their portfolio choices for the last three months.
The company noted that the dividend yield on the S&P 500 is higher than the T-bill return rate, which is incredibly rare and, in their view, should boost equity returns in the near-term. DPTR also sees the coming period as one filled with uncertainty, with the debt ceiling, government spending, and tax rates all showing up as domestic uncertainties, along with energy prices, the falling dollar, China and the Middle East. Taken together, these uncertainties reduce the predictability of the overall market.
DPTR sees some trends that point toward a possible recovery from the economic woes of the last few years. For example, they highlight GDP growth, industry production, disposable income and consumer consumption, which have all returned to pre-recession levels. DPTR believes that “we are currently in a long-term period of expansion due to the growing population of educated people living in market driven and reward driven economies, the growing ubiquity of knowledge that is able to be processed and analyzed in real time globally, and by the increased world-wide wealth per capita which drives more investment dollars.”
The company reports on the breakdowns of three portfolio choices -- Small Cap, Opportunistic, and Value. Among these, they identify five stocks that contributed the most to their gains, and five stocks that contributed least to their gains. Those that did well include Trinity Industries (NYSE: TRN), Patriot Coal (NYSE: PCX), Wabtec (NYSE: WAB), Take-Two Interactive Software (NASDAQ: TTWO), and Gulfmark Offshore (NYSE: GLF).
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