We have seen so many reports, articles, studies that show this is more of the normal and what we had lived through for the past multiple years was less normal. However, what we have experienced most recently is what we become accustomed to. We’re not going to quote you some article or historical fact that says this is the norm-even we have been uncomfortable with the sudden movements.
Just like we all became more accustomed to low volatility and capital markets that seem to increase day by month by quarter almost without ever dropping, we will again get used to this type of movement.
We don’t like it, and would rather not have it, and yes history says it’s more the norm but we’d rather have the abnormal – this is where we are now. We thank you for all of your confidence and once again given the recent volatility we are happy we are a more conservative firm.
It is a true statement that Markets have predicted 10 of the last 4 recessions. Meaning they often fret over things that do not occur, but that extra fretting tends to be correct is some cases. We acknowledge that the global economies are not growing “Red Hot” fast like they were last year, however we refute a global meltdown or imminent recession at this time.
After promising (Federal Open Market Committee – FOMC) multiple rate increases as recent as October (four to be exact) at this time that is not going to happen. With rates being somewhat a reflection of inflation, and inflation being wrung out of the system via technology and outsourcing, rates are likely near their “New Normal” range.
Earnings are the ultimate driver of capital market returns and interestingly they continue to be churning out very nice, taking into account the market recent volatility, valuations have become much less stressed and even cheap in many cases.
Your Fourth Quarter summary is enclosed on the front page of this report we have included our most recent investment allocation from your Investment Policy Statement. This is also the time we attach our Private Policy Statement for the year along with our opportunity to offer our latest ADV filings; Requests for review will be accepted via phone, mail or email, and mailed immediately upon request.
John A. Kvale CFA, CFP
J.K. Financial, Inc.
Our Promise to You
As a client of J.K. Financial, Inc., you share both personal and financial information
with us. Your privacy is important to us, and we are dedicated to safeguarding
your personal and financial information.
Information Provided by Clients
In the normal course of doing business, we typically obtain the following nonpublic
personal information about our clients:
Personal information regarding our clients’ identity such as name, address
and social security number;
Information regarding securities transactions effected by us; and
Client financial information such as net-worth, assets, income, bank account
information and account balances.
How We Manage and Protect Your Personal Information
We do not sell information about current or former clients to third parties, nor is it
our practice to disclose such information to third parties unless requested to do so
by a client or client representative or, if necessary, in order to process a transaction,
service an account or as permitted by law. Additionally, we may share information
with outside companies that perform administrative services for us. However, our
contractual arrangements with these service providers require them to treat your
information as confidential.
In order to protect your personal information, we maintain physical, electronic and
restricts the use of client information and requires that it be held in strict
In addition, we will inform you promptly if there are changes to our policy.
Please do not hesitate to contact us with questions about this notice.