1. January 9, 2015
Here is your portfolio report for the quarter ending December 31, 2014.
BENCHMARK INDICES FOR PERIOD ENDING DECEMBER 31, 2014
Annualized
Year to
Date
2013 3 years 5 years
Large U.S. Stocks (S&P 500 Index) 13.69 32.39 18.93 14.59
Small U.S. Stocks (Russell 1000 Index) 13.24 33.11 19.14 14.77
International Stocks (EAFE Index) -7.35 19.43 6.82 1.33
NASDAQ Composite 13.40 38.32 20.34 15.04
Barclays 1-3 yr Government bond 0.63 0.36 0.50 1.02
COMMENTARY
There are a number of theories why markets are more volatile: global growth fears, policy uncertainty,
geopolitical risk and even the Ebola virus. These issues are not new. Different time, different scenario but there
is always something going on in the economic playground.
In some ways, the increase in volatility recently could be just as much a reflection that volatility has been
very low for some time. Corrections happen. Markets do not move in one direction and if volatility remained
low forever, there would probably be more reason to worry.
What is the answer? We have always maintained that investors can manage their risk by diversifying
across and within asset classes. Keep cost down and don’t let emotions rule.
Points to remember
1. Don’t make presumptions
2. Someone is buying
3. Market timing is hard
4. Never forget the power of diversification
5. Markets and economies are different things
6. Nothing lasts forever
7. Discipline is rewarded
Please contact us if there are any changes in your financial situation or investment objectives; or if you wish to
impose, add, or modify any reasonable restrictions to our investment management services. If you wish to receive
a new ADVII (our disclosure document) please feel free to request it. We will do our utmost to keep you
informed of any changes in our firm through regular correspondence and these quarterly letters