Today is another wonderful summer Friday heading into a middle of the summer weekend. Don’t forget to spend time with those special in your life, we are now more than half way through 2014 !
FOMC Minutes Show Complacency Concerns
This from the latest Federal Open Market Committee (FOMC) minutes released July 9, 2014 … they sure concur with concerns from our Q 2 2014 Cover letter released July 8, 2014 … just one day prior:
…..The VIX, an index of option-implied volatility for one-month returns on the S&P 500 index, continued to decline and ended the period near its historical lows. Measures of uncertainty in other financial markets also declined; results from the Desk’s primary dealer survey suggested this development might have reflected low realized volatilities, generally favorable economic news, less uncertainty for the path of monetary policy, and complacency on the part of market participants about potential risks. …..
J.K. Financial, Inc. Second Quarter 2014 Cover Letter
……Calm v Complacent
Starting in the middle of May, trading volumes and professional investors appeared to take to the hills or Hamptons. While not unique to this time of the year, the magnitude has been greater this summer than in past. Our concern is complacency, not by us but by others. When the tide goes out we see who has been swimming without clothes. …..
We are in good company and cannot make this up. Coincident or not … This REALLY has our attention now !!
Traveling Out of State Today and Next Week
I am out of the state today and next week, headed south-east with a large group for a bit of business, lots of fun, sun (hopefully) and of course tennis for Sophia. I will be tethered lightly but always available.
Creative Juices Inspired
Traveling usually spurs the creative juices as the pressure of the seven computer screens subsides and macro thoughts come into focus. I will TRY to keep posts short as the family comment “You need a vacation from your vacation” begin to ring …. But hey I love what I do…. So it’s never work!
Happy Friday !
John A. Kvale CFA, CFP
PS Cathy has broken her left hand in a fall … we have increased the rings to give her more time to answer calls before it goes to our auto attendant, but if we miss your call it might be due to a one-handed phone cradle grab … She is recovering fine!
8222 Douglas Ave # 590
Dallas, TX 75225