James Cullen
Portfolio Manager
The Gruesome Twosome
Aaa - 8.94%
Aa - 7.2%
A - 13.07%
Baa - 11.01%
Ba - 14.82%
B - 4.99%
NR - 30.91%
Is The Commodity Bull Run Over?
• Unwinding of the “End of the World” Trade
Crushed Many Commodity Positions
• Emerging Market Demand Has Weakened
– But Speed, Magnitude Says Technical Correction
Areas of Interest:
Steel, Coal, Copper, Mining Equipment
Stocks We Own:
CALM, HGT, UPL, XOM, XTO
Financials
• "And if this were about a company here or there failing, I wouldn't be for
intervening in any way, shape or form. This is about our way of life, our society,
our economy, the American people's jobs, their savings. This isn't about Wall
Street. That's how serious this crisis is. And while I hope it works and we want it
to work, there's no guarantees here.“
– House Minority Leader John Boehner, R-Ohio.
Stocks We Own:
BAC, GS, JPM
To Summarize…
• Expect the Unprecedented
• US Economic Growth Got in a Fight with a Brick Wall
• Credit is Oil to Economy’s Engine; Extremely Scarce
• Europe Could Follow US into Downturn
• If Europe Falls, What Supports Asia/South America?