A Toast- To the Decade
This is the most common question the members of the Sloan Wealth Management (SWM) Portfolio Management Team fielded this holiday season. This common quandary is in the context of the (2010, 2011, 2012 and now 2013) bull-run in the stock market, but we cant help but visualize the numerous parallels to an actual party. If you have read our previous year-end letters you know we were among the first to arrive at the party and have no plans of leaving any time soon - as this decade remains enticing.
Keep Your Eye On The Ball - 2012 Year End Letter
The members of the Portfolio Management Team at Sloan Wealth Management (SWM) coach two baseball teams, two soccer teams, one T-ball team and one basketball team for our collective young children. Thus, we find ourselves stressing the basics. Learning the fundamentals of how to catch a pop-up will eliminate some of the fear of getting hit in the face. In 2012, we found many parallels to the capital markets as our portfolios posted high double digit returns in the face of fear.
This week the titles were again of debt crisis in Europe. But Europe was not the only recurring item. Many other aspects seemed strikingly familiarlike they just happened last year.and the year before. This year, The EM guys still like Emerging Markets, the folks taking TARP money are still on the front page of paper, the guys selling proprietary products still have charts to support their products, trouble in Middle East, North Koreans may have nuclear weapons, the bond guys still like bonds, the stock guys still like stocks, perm-a-bears still gloomy and Washington still a mess.
Life During War Time
This week, with European financial crisis almost in our rear view mirror, it is the price of oil that is leading the economic worry race. This worry race has seen more lead changes than the Republican Primary. Worrying about the economy is our new Cold War. We believe, that like the Cold War, this too shall pass.
Knowledge is the Antidote to Fear
We feel investors should focus on the high probability that this could be a rewarding decade. The volatility of the market can often mask the improving fundamentals. Now two years into the decade, we are pleased that the SWM Moderate Risk Composite is up 14%. This election year will create endless entertainment, needed discussion on the future of our great nation and finally clarity for corporations and individuals. This clarity should allow corporations to loosen their purse strings and continue to fuel growth.