Harry Rady News

In order to “Make Sense of the Markets” Harry Rady of Rady Asset Management, Quincy of The Hartford;  and Jim McCaughan of Principal Global Investors all appeared on the following CNBC Video. “Preparing your portfolio for next week, asks the above mentioned experts to analyze the market trends and advice on how to proceed into the future. Watch the video and glean some of their wisdom.

Despite an over two-month long surge in prices, there was little good news to maintain the market’s upward trend of the week ending on May 23rd. Advising caution, Harry Rady of Rady Asset Management remarked,

“Everything is overpriced. A very long, protracted recession is still very much alive.”

According to an article on “BradentonHerald.com” the week began on a positive note with stocks rallying on Monday. As the week progressed however, markets began a downward slide in response to several pieces of “not-so-good’ news which were announced during the week.

The federal government expects unemployment to reach as much as 9.6 percent, a much worse prediction than previously, and Standard and Poor’s may demote the British government from their present credit rating of AAA.
Hopes were thwarted when an early market gain on Friday ended the day with a total 15 point loss for the Dow Jones industrial average. As for the gains of the week, the major indicators all finished in the black, but only just.  The Dow squeeked ahead by 0.10 percent; S & P 500 index did slightly better with a 0.47 percent rise; and the Nasdaq did the best, almost finishing up by one whole percentage point at 0.71 percent increase in value.

The 10 week rally has lifted stocks by 30 percent since their 12-year low in March. With not much good news to continue to fuel this market surge stocks have been teetering and tottering without much gain in recent days.

The upcoming economic calendar is full of data such as reports of home sales levels, orders for manufactured products and indicators of consumer confidence, which should help determine which way this market is heading for the next few weeks.

Harry Rady of Rady Asset Management discusses his apprehension concerning the stress tests that government regulators are subjecting financial institutions to during the present economic downturn that the United States is facing at the moment.
Rady’s first concern is that the regulators don’t really have the “big picture” in mind. He believes that the stress tests are too homogeneous and rely too heavily on quantitative metrics.
His other concern is that there is a built in conflict of interest between the regulators, shareholders and management. The job of the regulators is to make sure that the companies stay solvent and that the flow of capital is unobstructed. They are not doing anything to protect the interests of the shareholders.
Listen to the entire interview now.

The Stock Market continued its downward progress after six weeks of an upward climb causing investors to speculate on what to expect in the coming days.

Despite the fact that Bank of America posted large profits for the first quarter of 2009, declaring net income triple its previous quarter, there was an overall 23% slide in their stocks value. The acquisition of Merrill Lynch added more than 3 billion dollars to its bottom line, but due to net charge-offs rising and huge credit card business losses the overall picture for B of A was not positive.

Commenting on the latest market swing Harry Rady of Rady Asset Management declared:

“The bank earnings so far just seem to be smoke and mirrors and the other companies aren’t reporting quality earnings. It’s just reducing expenses and dipping into reserves.”

For a more in depth discussion please follow the link to the full article: ‘US Stocks Lower As Banking Concerns Lead To Broad Sell-Off.’

A general downturn in small capitalization stocks was posted last Monday, April 21st, 2009. In addition to smaller, regional banks crude oil prices, metals such as copper, and energy, and materials stocks all helped contribute to the reversal of what had been a six-week steady improvement in stock market results.

The Russell 2000, which is the index of small-capitalization stocks, posted a loss of 26.88 points, which is 5.61%, falling to a value of 240.85.

Improving consistently for the past 6 weeks, the Russell increased value by over 30% since its low at the beginning of March.

Credit markets have not been improving, even with the posted gains in small caps. Corporations just don’t seem to be signaling positive signs.

“Because these earnings haven’t been as bad as feared, it’s just provided an opportunity to put on more shorts. It’s just another head fake,” said Harry Rady of Rady Asset Management.

See the full article here:US Small Caps Close Lower On Slide For Regional Banks

Rebecca Jarvis of the popular CNBC financial news program “Closing Bell” interviewed Harry Rady of Rady Asset Management located in San Diego, California along with Alex Sanchez, the President of the Florida Banker’s association, on March 3, 2009. In wake of the “economic free fall” the U.S. economy has been experiencing, Harry Rady shares his thoughts on what creative action the U.S. government might take in order to boost the economy and help homeowners maintain economic health and security. Rady suggests in this interview that the U.S. government should initiate a 4% mortgage program which he believes will refinance all these “toxic mortgages” off the balance sheets and put between $2,000 and $4,000 into the hands of every homeowner. In response to Rebecca Jarvis’s question of how this action would help increase cash flow to small business in America, Rady responds that in order to get the economy back on its feet we must begin with the housing industry. Hear and see the interview below.

Harry Rady holds the position of CEO of Rady Asset Management, a position he assumed in January 2006. Rady also serves in the capacity of Chairman of Investment Committee at the University of California San Diego. Ernest Rady, Rady’s father, donated the tenth largest donation to the Children’s Hospital, as well as a generous sum to the UCSD School of Management, then renamed to the UCSD Rady School of Management. (Harry Rady attended the University of Southern California, going on to receive an MBA from the Marshall School of Business at the university.

Rady Asset Management is an investment management firm that has high net worth investors at its focus. Previously, Rady served as the CIO (Chief Investment Officer) of a Private Investment Conglomerate between 1995 and 2004, specializing in real estate financing and corporate M&A activities in addition to portfolio management.

Harry M. Rady

Current

• CEO at Rady Asset Management
• Chairman of Investment Committee at UCSD Rady School of Management

Past

• Chief Investment Officer at Private Investment Conglomerate

Education

• University of Southern California
• University of Southern California – Marshall School of Business (MBA)