February 2016 Newsletter to Clients

Facts:

• Growth in China is slowing; around 13% a few years ago and now closer to 6%.
• The price of Oil has dropped significantly; from over $100 a barrel to a low of about $29.

These are the 2 headlines that have been blamed for moving the stock markets so significantly lower during the first month of 2016.  It immediately reminds me of the headlines we heard as the crisis in Greece reared its head; during those times the US stock market also suffered from PANIC selling and we urged you not to worry.  We are doing the same now.  So, after a terrible start to 2016 in terms of SHORT TERM stock market performance we are happy to report that we have never been more confident in our investment portfolios.  Over the past week we have had the chance to gather the most recently published performance information on all of the investments we own; we focus on 10 year returns but do not ignore the years in between.  Successful investment professionals KNOW that it is not possible to predict the future based on a short time period of a few years.  All financial theories are derived on past performance and the most respected ones often include multiple decades of data.

We analyze investments using many factors but the one we find ourselves repeating to clients most often is “after fees, has the fund out-performed the comparable index on a long term basis”.  If the answer is YES, the manager is meeting our expectations.  Based on your individual circumstances we then put together an investment portfolio allocating these stellar funds to your asset allocation model.   Market corrections are a normal part of the market cycle but we must consider the powerful influence of time when investing; as holding periods increase, the probability of positive returns has historically increased.  Please refer to the chart on page 3. 

AdvisorClient® Mobile App: We are pleased to announce that you can now take the convenience of AdvisorClient.com with you, wherever you go, with the addition of AdvisorClient Mobile for Android users. AdvisorClient Mobile enables you to view your real-time account balances, positions and transaction history from your Android and Apple mobile devices.*

Other convenient features include:

• Consolidated account balances
• Remote check deposit
• Detailed quotes
• Third-party research
• Quick access to Advisor contact information

We encourage all existing clients with AdvisorClient.com access to visit the Google Play ™ store or the Apple ® App Store to begin using AdvisorClient Mobile today! Also, any existing clients who would like to add this functionality are encouraged to contact the Lexington office.

*AdvisorClient Mobile is designed for smartphones but will also function on Apple and Android tablets.

Tax Document Update: Moneywatch recently mailed Realized Gains and Loss reports and Annual Management Fee Reports to your address of record; TDA has begun sending 1099’s and all will be sent out by 02/16/2016. 

Vault Update: Please remember to download your documents in your Moneywatch SmartVault to your device or print them for your records.  Quarterly, beginning April 1, we will begin clearing out your folders. 

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.