Capital markets have enjoyed a strong rally year-to-date (YTD) in 2013 with gains in the 15%-20% range. This comes on top of double-digit returns for 2012. On the other hand, Fed policies are threatening to come to an end and a potential war in the Middle East could send stocks plummeting. Investors are now struggling with the dilemma of whether to protect YTD gains or gamble on future appreciation. Should investors just cash out now while they are ahead of the game? Given all the tumult, along with September’s historically negative performance, what’s a savvy investor to do? This research paper explains the difference between the performance of bureaucratic companies and entrepreneurial companies.
