January 2014 Newsletter to Clients
Submitted by Moneywatch Advisors on January 1st, 2014HAPPY NEW YEAR!
We want to welcome Lee Chapman as our new Operations Director. Elizabeth Shropshire is moving with her husband who has taken a new position elsewhere in Kentucky. We regret Elizabeth’s departure. She has served you, our clients, in a professional manner and our company commendably.
This past year has had its ups and downs with the stock market performing superbly and the bond and gold market performing poorly. Our venture capital investment, Harris & Harris (TINY) and the gold fund, First Eagle (SGGDX), were drags on overall performance but fortunately comprise less than 10% of our total portfolios. The BlackRock floating rate funds hit highs in May and have since suffered ten percent price setbacks. As long as the Federal Reserve Bank keeps short term interest rates low, BlackRock’s earnings cannot rise as we hope. Once our economy gains more traction and the unemployment rate drops below 6.5%, the Fed will raise short term rates. Interestingly, BlackRock paid early in December and then declared another distribution for shareholders of record as of December 31 for payment on January 8. The performance of the stock market is forecasting better economic times ahead and we plan to be part of it.
Listed below are our core holdings and how they have performed to date:
|
52-WK RANGE |
% CHG FROM 52-WK LOW * |
||
| NAME |
LOW |
HIGH |
|
| Janus Triton Fund |
18.44 |
23.75 |
27.44% |
| Oakmark Fund |
49.67 |
65.01 |
27.36% |
| American Century Value |
6.51 |
8.22 |
25.04% |
| Harbor International |
60.9 |
72.53 |
14.50% |
| American Century Heritage |
22.86 |
28.89 |
10.28% |
| CGM Realty Fund |
28.25 |
33.38 |
8.42% |
| First Eagle Gold Fund |
14.02 |
27.19 |
6.63% |
| BlackRock Floating Rate Income Trust |
13.56 |
16.37 |
3.69% |
| Harris & Harris, Inc. |
2.95 |
3.94 |
2.03% |
| BlackRock Floating Rate Income Strategies |
14.3 |
16.81 |
1.47% |
* Data presented reflects past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and fund share value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains.
Important Documents for 2013 Tax Preparation:
- Management Fees Paid (Moneywatch Advisors will mail on February 10)
- Realized Gains & Loss Report for taxable accounts (Moneywatch Advisors will mail on February 10)
- 1099’s (TD Ameritrade will begin issuing in late February)
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.
