The Triad Perspective
     


Triad Investment Management, LLC is a SEC-registered investment adviser based in Newport Beach, California.  We manage portfolios, including retirement and corporate accounts, and provide investment counsel to our select group of clients, which include:
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What's In A Name?

Bull Market.  Bear Market.  Most people have heard the terms, but what do they mean?  Bull Market is what most everyone hopes for--rising stock prices.  Bear Market, just the opposite.  But where did these odd phrases originate from?
 
There is no certainty on the origin of either phrase.  But the history of Bear Market is more colorful and seems to have more agreement among historians.

 

Way back when, in perhaps the 16 th century, bearskins were a traded commodity.  Trappers would kill the bears--sorry animal lovers--and sell or trade the bearskins to traders for money or goods.  These traders would sell to their customers.  The traders would agree on a price with their customers before paying the trappers for the bearskins.  Since the traders were setting the price with their customers before paying for the bearskins, they would have to guess what the bearskin would cost them.  Naturally, they'd hope that the market price of bearskins would decline so they would pay the trappers less, increasing their profit.  That's how a market decline came to be called a "Bear Market."
 
Bull Market has a murkier explanation.  Some people attribute Bull Market to the energy displayed by a bull, as opposed to the stereotype of a sleepy bear.  Another explanation is the fighting style of each animal.  Bears attack by thrusting their paws in a downward motion.  I haven't been attacked by a bear, so I'm guessing this is true.  A bull, in contrast, fights by thrusting its horns in an upward motion, signifying the stock market's upward direction. 
 
Bottom line, who really knows?  Regardless of the labels, pay attention to what's happening in the stock market.  Nothing goes in one direction forever.  We've had eight years of mostly upward stock market movement.  How long will it last?  That's the question we hear often.  And our answer?  We don't know.  Honest and yet not very helpful.  No one knows.  People who tell you they know, are either liars or fools.  Either way, don't listen to them.
 
It's not a difficult next step to conclude that we probably won't have another eight years of rising stock prices.  What to do?  Make sure you have a diversified portfolio, with enough cash to see you through the next bear market--average length about nine months.  The bear is currently in hibernation, but will eventually emerge, and he probably won't be in a good mood.

-John Heldman, CFA




Past performance does not guarantee future results.  Results are presented net of fees and include the reinvestment of all income.  The opinions expressed herein are those of Triad Investment Management, LLC and are subject to change without notice. Consider the investment objectives, risks and expenses before investing. The information in this presentation should not be considered as a recommendation to buy or sell any particular security and should not be considered as investment advice of any kind. You should not assume that any securities discussed in this report are or will be profitable, or that recommendations we make in the future will be profitable or equal the performance of any securities discussed in this presentation. The report is based on data obtained from sources believed to be reliable but is not guaranteed as being accurate and does not purport to be a complete summary of the available data. Recommendations for the past twelve months are available upon request. In addition to clients, partners and employees or their family members may have a position in any securities mentioned herein. Triad Investment Management, LLC is a SEC-registered investment adviser. More information about us is included in our SEC Form ADV Part 2, which is available upon request.  
     

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