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Fall Quarterly Commentary
by John G. Prichard, Miles E. Yourman, Kurt Beimfohr, Jeff Vieth of Knightsbridge Asset Management, 10/13/20

The world feels topsy turvy. We are in the midst of the sharpest recession since the Great Depression, businesses are closing left and right, and yet for many it doesn’t seem like a recession at all... and the stock market is booming? The virus, and the responses to it, have turned the world upside down. Let’s straighten out what we can.

Winter Quarterly Commentary
by John G. Prichard, Miles Yourman of Knightsbridge Asset Management, 2/2/18

Sir Isaac Newton’s magnum opus, Mathematical Principals of Natural Philosophy, established the laws of motion and universal gravitation which underpinned how scientists thought about the physical universe for centuries. Newton did not cover the laws of financial gravitation, which appeared not to apply in 2017 as the stock market soared to another 22% return...

Spring Quarterly Commentary
by John G. Prichard of Knightsbridge Asset Management, 5/11/12
U.S. GDP rose at a disappointing 2.2% annual rate during the first quarter of 2012; so far this recovery has been too weak to reduce relative government debt levels through growth. A step toward austerity is next years fiscal cliff which features automatic spending cuts and tax increases. We have been told one-third of the entire tax code is expiring at the end of this year, with payroll, income, capital gain and dividend tax burdens all set to increase. Simultaneously, automatic cuts to defense and other discretionary areas of the Federal budget are set to take effect.

Q4 2011 Market Commentary
by John G. Prichard of Knightsbridge Asset Management, 1/31/12
The proposed restructuring for private creditors of Greece has been called voluntary. Who voluntarily takes 30 cents on the dollar? The government authorities involved have insisted that any deal be deemed voluntary to avoid triggering credit default swaps (CDS) written on Greek debt. These CDS could accurately be called insurance contracts that are supposed to pay out if the Greek government defaults or changes the terms of its debt. The ISDA, the entity who decides these things, has more or less already said they wont consider the default a default.

Fall 2011 Quarterly Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 10/14/11
We are left with depressed equity valuation in the US and Europe. Stocks are not supposed to be this cheap in the face of interest rates and inflation this low. In fact, stocks have tended to trade at more like 20 times earnings in the context of todays 2% inflation and 2% ten year Treasury yields, roughly 50% higher than todays valuation. Alan Greenspans Fed Model, which compares forward earnings yield (inverse of P/E) to 10 year Treasury yields, suggests US stocks are the most compelling vs. Treasuries in over fifty years.

Knightsbridge Summer 2011 Market Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 7/22/11
Investors too are growing weary with disasters as macro forces whip them side to side, up and down. Be they of the sovereign risk variety or closer to home such as the potential extension of the $14.29 trillion federal debt ceiling. Rational heads assume the debt ceiling will be increased at the last minute. Lines in the sand have been drawn. Moodys and Standard & Poors have issued stern warnings that a downgrade from AAA is imminent should progress not materialize quickly. In the face of this, few investors want to do anything other than sit on the sidelines and wait until its over.

Spring Quarterly Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 4/14/11
Just when the bull market was heating up, world events conspired to take it back down. It has been said that stock purchases are made with logic and stock sales made with emotion. Monsieur Pascal expressed similar thoughts a century-and-a-half prior to the founding of the NYSE. In the first quarter, the MENA (Middle East North Africa) rebellions followed by the Fukushima Dai-Ichi nuclear problems provided the rationale for reassessment of risk. Although this reassessment resulted in a 7% correction, by quarter?s end virtually all had been recovered.

Q4 2010 Market Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 2/3/11
All in all, it should be a year of recovery, both economically and for the equities markets. The market undoubtedly will once again climb the proverbial wall-of-worry with negatives and risks including: Unresolved euro currency issues, government debt growth, federal and municipal, and municipal solvency issues. We also believe that consensus 2011 real GDP growth, currently expected to be about 3.5%, a number that has moved up in the past few months, is supportive of a 16-multiple for the market as seen to the left. Therefore we must believe P/E?s are going higher rather than lower.

Fall Quarterly Commentary
by John G. Prichard of Knightsbridge Asset Management, 11/15/10
Economic and employment conditions remain soft amidst continued deleveraging. Developed market debt and currency issues remain. There are however offsetting positives. Corporations are in good shape with lots of cash and moderate leverage. Household finances are improving as well. Further, it is important to remain cognizant of the fact that conditions can change and equities are forward looking. Housing and autos, common drivers of economic expansion, should kick in at some future point.

Summer Quarterly Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 8/4/10
One might have anticipated a large increase in inflation, given gold's five-fold increase in value since 2001. In fact, the polar opposite has occurred: Instead of inflation, we are now under threat of deflation. The reason for this reversal lies in investor fear of quantitative easing. The more signs emerge that deflation is on the horizon, the more likely it seems that the government will use quantitative easing, which in turn would hasten the day of monetary reckoning, when there will be no hope of debts ever being serviced, much less paid off.

Spring Quarterly Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 5/11/10
The stock and bond markets are currently consumed with evaluating the risks from the crisis in Greece...and at Goldman Sachs. Each crisis could cause losses for investors. The simple fact, however, is that by the time most armchair investors have been alerted to impending tragedies, the tragedies have largely already occurred. That is why being reactive is seldom a prescription for loss avoidance, and why such crises are seldom viewed by investors as opportunities for gains.

Winter Quarterly Commentary
by Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management, 2/13/10
Alan T. Beimfohr and John G. Prichard of Knightsbridge Asset Management say in their winter quarterly commentary that the federal government will need to time its balancing of the budget just right in order to avoid either a repeat downturn or accumulating inflation. The Fed, meanwhile, will also need to withdraw monetary stimulus at just the right time.

Fall Quarterly Commentary
by John G. Prichard of Knightsbridge Asset Management, 10/15/09

Summer Quarterly Commentary
by John G. Prichard of Knightsbridge Asset Management, 8/4/09

Spring Quarterly Commentary
by John G. Prichard of Knightsbridge Asset Management, 5/11/09

Winter Quarterly Commentary
by John G. Prichard of Knightsbridge Asset Management, 1/27/09

Fall 2008 Commentary
by John G. Prichard of Knightsbridge Asset Management, 10/31/08

Summer 2008 Commentary
by John G. Prichard of Knightsbridge Asset Management, 7/29/08

Quarterly Market Commentary
by John G. Prichard of Knightsbridge Asset Management, 2/21/08
19 results found.