THE ECLECTICA FUND - OCTOBER 2003
Investment Manager’s Report:
There is nothing better than a good funeral but this market has refused to lie down and die. Last month was the market’s best gain since long rates started to rise in June. Economically, Europe remains the bystander. We have watched the US government push Mont Blanc into Lake Geneva but will the lake be like a millpond two weeks later? How long will this recovery last? All of the indicators give little answer. The waves are still lashing the shore. Employment is growing in the USA at +120,000 per month, which keeps the wolf from the door. Optimism is high in the stock market and record profit margins in the 3rd quarter are encouraging capex.