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Market Update, 10/23/2008

Market Update, 10/23/2008

We held a conference call to share our views on this very difficult bear market. We’re in one of the top 10 worst bear markets since 1901 caused partially by a credit crisis, and being solved, in part, by monetary and fiscal stimulus. There are trillions of dollars on the sidelines right now, potentially ready to fuel the next rally in the stock market. We know sentiment is extremely negative, but we have discovered that over time, it tends to point to a market bottom. Although bear markets are unnerving for investors, Heartland views this as an opportunity to find those companies which we believe represent outstanding values.

During the call Bill Nasgovitz, Will Nasgovitz and Mike Petroff discussed the market turmoil and how Heartland's disciplines are brought to bear. In a question and answer format, they addressed the following topics. We invite you to click on the links to hear their responses.

View the presentation that accompanied the call (PDF- 437KB )

Q1: There’s unprecedented volatility in this market, a huge sell-off over the past few weeks. Can you give us some perspective on what’s taken place in the market today?

Click to hear Bill Nasgovitz's response. (5:18)

Q2: What about the falling commodity prices that we’re seeing today? Are stock market valuations attractive today?

Click to hear Bill Nasgovitz's response. (4:37)

Q3: What are we doing to mitigate risk in our portfolios today? With investor confidence very low right now, how are investors reacting to all this market release?

Click to hear Bill Nasgovitz's response. (7:41)

Q4: Have we changed our investment process given today’s market turmoil?

Click to hear Bill Nasgovitz's response. (2:06)

Q5: Heartland has historically been known for small micro cap investments. Why small caps now?

Click to hear Mike Petroff’s response. (1:21)

Q6: What do we mean when say the Select Value Fund can be used as a core holding for virtually any portfolio?

Click to hear Will Nasgovitz’s response. (1:15)

Q7: How are you positioning the Value Plus in this big bad bear market today?

Click to hear Mike Petroff’s response. (1:29)

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