Q2, 2014 Market Review and Outlook


Posted in: General

To Our Clients and Friends:

It’s hard to believe that 2014 is half over.  It’s been a great year so far at FSR and we hope you have had an equally fine 2014 to date.

The economy has continued to improve through 2014.  The Fed has begun their process of unwinding the third round of Quantitative Easing (QE3).  As you may recall, this round of QE was begun back in September 2012 with the intent to spur economic activity.  This unwinding has some market pundits fearful.

The Investment Committee at Global Financial believes that QE3 was merely a crutch that our hobbled economy needed and now we are hopefully strong enough to operate without the crutch.

During the second half of 2014, the Investment Committee will be watching the unwinding of QE3 as well as the mid-term elections.   They continue to stick to their 7 – 10% annual prediction for the S&P for 2014.  The Committee warns against trying to time the market because they would not be surprised to see increase in volatility.  Any major corrections are planned to be treated as buying opportunities.

Fixed income has unexpectedly surged so far in 2014, but the Investment Committee believes playing defense against potential rising interest rates is the “the most prudent strategy.”

Because personal situations are constantly changing, it is important for us to touch base with you at least once a year.  Some annual reviews can be done over the phone and others are best handled in person.  At the appropriate time, we will contact you to schedule your review.  If you have questions or concerns, you don’t have to wait for us to call you.  Please feel free to contact us at any time.

To read the entire review from Global Financial Click Here.

If you’d like to see what Chief Investment Officer, Chris Bertelson has to say please Click Here.