Enclosed you will find your Q 1, 2013 Performance report for your perusal. As a review this report summarizes your transactions for the latest 90 days and also contains tax basis for all investments.
We are happy to be wrong so far as the capital markets made new highs in the face of declining earnings growth. While we are skeptical of this climb we are happy for the ride. As a reminder the last three years have seen similar starts to the year only to have a few more bumps for much of the remainder. We expect this to be the case this year as well.
Given our conservative view, we continue to feel a good defense is the best offense. The upside will take care of itself and we will closely monitor our allocations and trim in the face of overweight growth areas in order to hold portfolios at the appropriate risk level. In preparation, if we have a pullback in capital markets we will take a more offensive view as long as the economy continues to heal and no obvious road blocks are on the horizon.
The Economy is getting better as housing continues to heal and the FED continues to suppress interest rates. Housing, which makes up a large portion of our US economy, especially when including the jobs that this sector employs is healing, and more importantly gaining consumer confidence. Also the FED is purchasing large amounts of mortgage related bonds keeping interest rates low for consumer financing. While there is much debate on when this rate suppression will stop, rates have behaved in a positive manner so far this year.
The newsletter is on the presses and soon to hit your mailbox. With a longer term, more planning, and less statistical feel this quarter we hope you enjoy the articles. Many of our subjects this quarter were a direct result of repeated experiences in the quarter and hopefully timely.
Have a Super Spring!
John A. Kvale CFA, CFP
Enclosures (First Quarter 2013 Performance Report)