Steady As We Go

Businessman on the ropeIt is not surprising with all the recent world events, bad weather, and nearing the end of the first for 2014 that folk’s investment anxiety has risen. Russia thumbed its nose or middle finger at the world when they took over Crimea. A Malaysian Jet Liner has just vanished. Syria is still engulfed in conflict. Janet Yellen is the new face for the Federal Reserve and we all know how the market does not like change. This country still continues to carry HUGH Debts. Yes, I have to say that for the first 3 months of this year, concern, risk, and volatility are back in the market.

Looking at the Volatility Index (VIX) it is up 1%. It closed on 1/6/2014 at 13.55 and on 3/19/2014 it closed at 15.12.1 We have had what I would say is a slight increase in concerned calls from our clients, but it is not a flood and it is not a panic.

What I am observing is that investors are asking good and natural questions.

Questions like:

• Is it time to take profits and look for other opportunities?

• Are my bonds positioned correctly for a rising interest rate environment?

• Are we at or near the end of this cycles Bull Run and what are our next plans?

• Are we taking advantage of the energy sectors and how can I do this?

• How can we protect against unexpected downside events, but be positioned for a still growing market?

All these and many more questions that I know you might be thinking are good ones for review and considerations. We are meeting regularly together with our clients, talking with our trusted advisors and sources seeking answers.

So I am not alarmed at the volatility or the events that are occurring. We are keenly aware of them and will continue to ask: “how does this affect our investment decisions and what do we need to do to keep the portfolio moving in the right direction?”

We still believe the market will end higher than it started in January 2014. We are just going to have a few more bumps in the road and we need to always be on the lookout for opportunities.

My thought today “steady as we go!” 1

• The opinions voiced in this material are for general information only and are not intended to prove specific advice or recommendations for any individual. To determine which investments(s) may be appropriate for you, consult your financial advisor prior to investing. • The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. • Stock and mutual fund investing involves risk including loss of principal. • Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values and yields will decline as interest rates rise and bonds are subject to availability and change in price. • The VIX is a measure of the volatility implied in the prices of options contracts for the S&P 500. It is a market-based estimate of future volatility. When sentiment reaches one extreme or the other, the market typically reverses course. While this is not necessarily predictive it does measure the current degree of fear present in the stock market • All indicies are unmanaged and may not be invested into directly.