January 2014 Market Update

I hope you had a wonderful Holiday Season.  2013 was a wonderful year for the U.S. market and you will see some nice dividends and capital gains hitting your accounts in December and January. After the markets ran up during the first quarter the news pundits were saying the markets were overvalued, the next quarter predicted the Fed would “taper QE” and the markets would take an enormous hit, the third predicted the bad effects of the government shutdown, and this last quarter felt the effects of the Volker Rule, Dodd Frank, and Obamacare. All predictions were wrong and stunningly so. You cannot predict which way the market will go and certainly not why until after the fact. According to Morningstar’s broad U.S. index the market for the year was up a whopping 33.13% and the five year average annualized return was up 18.73%. It was the best year since 1997. The economy is ever so slowly getting better. I think this market will continue upward barring some external shock.

I am grateful to all of you and wish you a prosperous year with good health, thank you for the trust you place in us.

 

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