by Scott Ronalds

From our Quarterly Report:

The cover of last quarter’s report read, "In weak markets investors should be raising their expectations for stock returns, not lowering them as is so often the case."

In that report, we told you that we were shifting from defense to offense. Valuations were reasonable again and investor sentiment was extremely bearish. Both factors were conducive to good future returns.

As it turned out, bond and stock markets rallied dramatically in the first quarter. To be clear, our more upbeat advice to clients and asset mix shift in the Founders Fund in no way anticipated this market turnaround. They were based on an improvement to our medium-term return expectations.

Read Tom's full brief and the rest of our Report here.