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Founders Capital Management, Inc.

Houston, Texas

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 We scour our numerous sources for information and research in order to bring you content which we believe to be timely and relevant. The links below will take you to outside sources which we use to stay informed on a variety of topics including investing strategies, the global markets and economies, politics and current events.
Seeing the markets come down from their post-election levels has lead some observers to wonder of the effectiveness of market timing. The attached report from Lord Abbett Management clearly highlights the risk involved in employing this tactic consistently for long periods of time. Such advice bears repeating.
The final six weeks of 2016 provided a substantial lift to equities markets, setting up expectations for a bright year ahead. This report from Lord Abbett Management provides a concise review of some major themes which could play out as 2017 unfolds.
The U.S. Money Market sector is undergoing a sea change as mandated by the SEC in rule changes that took effect this month. The end result is that investors have fewer options and more restrictions when investing for liquidity. 
We've experienced multiple quarters of ho-hum economic news over the past few years while at the same time the stock markets seem to anticipate better times ahead. Most notable recent events have been what appears to be a rebound in the energy sector, and The Shot Heard 'Round The World II. Has Britain fired another first shot?
What do Richard Nixon and  George W. Bush have in common? How about Gerald Ford and Bill Clinton? If you answered they were all U.S. presidents, of course you are correct. But the answer we have in mind is not nearly so obvious. Take a look at how the stock market has performed during the administrations of the past 10 presidents, then ask yourself if it's advisable to be invested through terms of both Republicans and Democrats.
What was the effect of the summer's market meltdown on world markets? Predictable similarities across the globe are illustrated here, but the full story is about understanding foreign investment risk as much as it is about lower stock prices and upside potential. In our view limiting exposure and broad diversification are even more important when considering foreign, and especially emerging markets, investments.
As the energy markets are comprised of two components, we believe an in-depth review and forecast of the natural gas markets is certainly timely. Some of the world's most productive gas plays are in the United States, but being plentiful and clean don't completely offset the risks involved in investing in this space.
This brief report highlights how dividend-paying stocks have fared during periods when the Federal Reserve raised interest rates. Of course not all such stocks are created equal, nor are the current events of the time, but the numbers shown here illustrate an encouraging picture.
We may finally be on the verge of the Federal Reserve voting to raise interest rates. We believe our skepticism is warranted because we've been on the verge before only to see no action taken. According to the attached report, the natural equilibrium between the supply and demand of credit is so far gone that if the Fed does not act soon we may be in for another financial crisis.
For a country that has driven global demand for steel, concrete and other heavy building materials, China's economy has recently shown signs that it might have been built with paper. Is China in the midst of a correction that many believe is overdue?
International equities outperformed all other asset classes in the first half driven largely by the strengthening dollar relative to other currencies. All the factors that have kept US growth substandard remain in place, leaving many analysts to think there are no catalysts to increase the pace of our plodding economy in the short term.
If it seems that our economic recovery has been weak and slow for the past several years, the reason it that it has. Whether measured by unemployment, wages or housing, the pace of improvement has been less than we've experienced in past recoveries. The attached chart from the Treasury Department leads us to wonder what the causes are for what we see.
The U.S. Energy Information Administration reports this month that global oil production continues to be higher than demand as inventories are projected to continue to build during the first half of 2015. Expectations for the second half of the year are for inventories to moderate because of lower oil prices.
Two well-used adages come to mind when looking at the above attachment: "A picture is worth a thousand words", and "Putting things into perspective." Too often daily occurrences, such as falling oil prices or rising consumer sentiment, excite our passions of the moment. It is at such moments that errant actions and shortsighted decisions are often made, elevating the risk that we miss market opportunities. We wouldn't want to miss seeing the forest for the trees.
Weakness abroad has led some countries to "expand their balance sheets." (Remember QE?) It remains to be seen how the American Flu will affect Europe and Japan. Some would argue that bigger government spending here led to the muted economic growth described in the attachment below.
Performing in fits and starts aptly describes the U.S. economy over the past couple of years, and 2014 was no different. Is low single digit growth the new normal? Only if you believe it's the best we can do.
The economy in the Lone Star State continues to lead the nation in multiple categories, as highlighted in the attached report by the Federal Reserve Bank of Dallas. Look for these numbers to play a significant role in statewide and congressional elections next month.
With so much recent excitement and buzz about today's market valuations and comparisons to the technology bubble of the late 1990s, we thought it would be instructive to set aside emotions and take a dispassionate look at the fundamentals of that space. A report by Lazard Management draws some interesting conclusions.
An April report by Lord, Abbett and Co. reviews a study comparing trailing P/E ratios during times of historic market highs to current levels of today's markets. Using history as a guide, along with some other positive factors the authors note, suggest the bull market may have further to go.
An activist government, be it via any of the three constitutional branches, is a concept that is well-known among "politico-philes." The merits of activism are debatable, but what ought to be universally held is the purveyors of activist policies should be elected, not appointed, officials. Otherwise, what mode of redress is preserved for the people? We read with great interest a recent speech by Daniel K. Tarullo, member of the appointed Federal Reserve Board of Governors, and call your attention to his advocacy for more government programs. Caveat emptor!
Leave it to economists to try to quantify, measure and correlate such intangibles as emotions and uncertainty. We must admit that the folks at Blackrock have made it interesting to learn about the Economic Policy Uncertainty Index, how it is influenced by Washington and how it affects the economy.