Third Quarter 2012 J.K. Financial, Inc. Performance Report Cover Letter (Clients)

Dear Investor,

Several weeks ago while playing Mr. Mom I was talked out of multiple pieces of chocolate as my fatigued 4 and 7 year old clamored for more horsepower. Being slightly short sighted and not completely understanding of the end repercussions that were being embarked upon I gave them the candy and found myself in the following quandary: 

  1. Just what is the baseline of normal now that I have energized them?
  2. Are they acting up because of the sugar or is that just normal kid stuff?
  3.  Will they expect this again in the future when they grow tired? (Of course) 

Recently Ben Bernanke turned the sugar spicket on for the capital markets and while we are always pleased when we can present a money making Quarterly report to you (Q 3 2012 performance report enclosed) we are cautious of what our new normal is at the moment. We discuss this action in great detail in the coming Newsletter, but Mr. Bernanke, like my personal experience, may have similar quandaries in the coming quarters. 

With the Dow, S&P 500 and European markets rising between 4%-6% for the quarter we are once again happily sitting at our high water marks for the year, which was first seen at the end of the first quarter of this year (Q1 2012.) 

THE GOOD NEWS is if you are reading this cover page, we have reviewed and re-reviewed your allocations to confirm proper diversification. No amount of diversification will completely stop losses, however by sticking with our allocations and trimming overweight areas when necessary and adding to badly performing underweight areas when needed, we will help control for risk and maximize our long term growth opportunities. 

Enclosed you will find your Quarterly performance report that summarizes transactions for the latest 90 days and contains tax basis information for all investments. As a reminder this is not a replacement to your regular monthly statements you receive directly from our vendor, only additional information for greater granularity. 

Have a Great Day! 


John A. Kvale CFA, CFP

Enclosures (Third Quarter 2012 Performance Report)

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