November 2015 Newsletter to Clients

Enjoy this month’s edition that features several updates to our investment portfolio, an Email Fraud and Identity Theft notice, holiday open house invitation and reminder on how clients can access their statements via their secure MONEYWATCH VAULT.

Economy Overview: No inflation, a weak economy, a strong United States dollar is anathema to gold. We fear we overstayed our investment in gold and will now begin to correct this condition by gradually selling gold funds and moving that money into more rewarding investments. When we see evidence of rising inflation and with it, a weakening dollar, another venture into the precious metal may be warranted.

Closed End Funds: A recent financial article in Investment Insights: The Blog entitled Closed-end funds trading at steepest discounts in eight years as investors sell ahead of rate increase points out this anomaly. Large discounts of stock price to net asset value are predictive of a coming rally in stock prices and represent a great buying opportunity. Who can say No to a 10% sale! Closed-end funds number less than 600 with $230-billion in total assets. Not exactly a large amount of money, the average discount to net asset value has been about 4%. Some funds are actually trading at discounts of twice my 10% sale example. Our BGT is selling at an eleven percent discount.

We want to share a paragraph from the Janus Global Sector Report…

Overall, valuations this quarter came down to more reasonable levels. Price-earnings ratios (P/Es) are down to historical averages, price to cash flow is below average and dividend yields for many indices and companies exceed 10-year bond rates. Markets are not giving many companies credit for their growth potential. The best opportunities are specific companies that are growing through capital allocation or by gaining market share. These companies can grow with a backdrop of slow global economic growth.

Buyer Beware: Email Fraud and Identity Theft continue to pose problems for some individuals so we ask that you please be aware that everyday precautions should be taken. Unless standing instructions have been completed and are on file with us, we will always follow up email requests with a verbal authorization. Moneywatch employees have been instructed to ‘be aware and have a sense of urgency’ if suspicious activity is detected. Please be patient with us as we only have your best interest in mind. Contact our office immediately if you believe you have been the target of Email Fraud or Identity Theft. 

Holiday Open House: Moneywatch Advisors will be hosting a Holiday Open House on December 15th at our office building on Walton Avenue, all are welcome and we hope to see you. 

Technology Enhancements: Over the next TWO months we will continue to roll out a new ELECTRONIC STATEMENT DELIVERY SYSTEM, MONEYWATCH VAULT. As mentioned in the May 2015 Newsletter to Clients, we are continually upgrading our technology in an effort to protect your personal information. Beginning January 1, 2016 we will no longer attach documents with personal information to emails. We will create a SmartVault for each client that will house all delivered documents. If you would like to retain these documents for future use, please download them to your personal device. Each month you will receive an email with a link to your personal VAULT containing the most recent documents. We will also provide a link to the MONEYWATCH VAULT on our website. You will need to enter your email address and password to access the VAULT. For first time users, upon entering your email address and password you will receive notification that you must first REGISTER. Follow the instructions and you will be logged into your VAULT within minutes.  As always, please call the office if you need assistance.

We wish each of you a Happy Thanksgiving. 

Thank you for your continuing confidence.

Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.