Market-View 1st Quarter 2014

Portfolio Recap As the 1st quarter of 2014 came to a close and the 2nd quarter began, the US stock market remained near record highs.  Talk by the Federal Reserve of ending (tapering) their quantitative easing program sooner, questions around whether corporate earnings can support valuations and recent geopolitical events in the Ukraine, all contributed to increased volatility and concerns over how much longer the current 6 year bull market will continue.  Through all of this, your portfolios showed resiliency and experienced steady, positive performance. Our diversified approach to managing investments continued to focus on limiting downside equity risk through a bias for value-oriented, dividend paying domestic and international equities.  In the short term, volatility and potential for loss has been further mitigated by allocating fewer investment dollars to small cap and emerging international, both of which carry more risk than other areas in the equity markets.  Small cap has also experienced significant gains over the past several years further motivating a reduction because we believe the prospect for significant future appreciation has diminished.  Hybrid investments, led by preferred stock, Read on! →