26 Oct 2009 Meridian Funds - Q3 2009 Commentary ( Portfolio )
Gross Domestic Product declined 0.7% in the second quarter, an improvement over previous periods. The economy has stabilized and is showing modest signs of growth in most areas. Housing prices, consumer spending, industrial production and construction spending have improved in recent months. Monetary and fiscal policy remain expansionary, interest rates remain low and inflation is not an issue at this point. We expect the economy to show modest growth for the balance of 2009 and through 2010. It’s questionable, however, whether growth will be sufficient to reduce the rate of unemployment or make a dent in the swelling deficit. We need policies that encourage business to invest, hire workers and remain competitive in world markets. Tax hikes and deficit-increasing entitlement programs are not the medicine for an economy approaching 10% unemployment.

Long-term investment results, history clearly shows, are improved by buying good companies or mutual funds or adding to existing positions during difficult stock market environments. We welcome those new shareholders who joined the Meridian Funds during the quarter and appreciate the continued confidence of our existing shareholders.