Dear Clients & Friends,
2016 is coming to an end and what a year it has been! The unexpected occurred with immediate positive results even as the media assured us that the markets and citizens hate uncertainty and will avoid it.
But when has there ever been anything but uncertainty?
And we are back to the certainty of the media publishing ever more predictions of the meaning of the changes occurring. Our attitude: wait and see, and be invested.
As investors we are excited. We’ve been buying and holding while the rewards have been limited the past three years – three years which now fall into the category of “short-term.” In a matter of hours, America’s outlook changed and once again the expected rewards of investing in America’s economy became exciting!
Optimism returned – some people always had it – but the percentage is increasing. People are taking their money out of bonds and investing in stocks. It appears we are returning to a “normal environment” where the cost of borrowing will be higher and the rewards of owning unlimited.
As we power to the end of 2016, the DJIA is reaching new highs each day. Could it all come tumbling down and show less of a return by the end of the year? Of course, but wouldn’t that simply provide one more short term opportunity to buy a little cheaper? Do you remember the shock of John Templeton telling us the DJIA would reach 3,000 by the end of the eighties? Now we are nearly at 20,000! Wish I had been able to invest more back then!
As long-term believers of “buy and hold,” we are excited. Buy and hold quality that is! There is a difference, and we work hard to find and choose high-quality investments for our clients’ portfolios.
We also work hard to overcome conflicting and bad investment advice provided freely by the media. We work hard to keep it simple and make you money as the years pile up…savings in investments which give you some security against problems and uncertainty.
We hold steady as we apply the time proven strategy of ‘buy and hold.’ We emphasize understanding and applying tax laws that help you accumulate money. We help you understand and keep current tools which care for one’s family when emergencies occur: updated beneficiaries, current powers of attorney, trusts, and wills. Life is smoother for investors who have a plan! Let’s enjoy the process!
Please be aware of an important change by the Department of Revenue regarding your Wisconsin tax refund. To prevent fraudulent tax returns, the DOR will randomly select and require individuals to verify their identities. If selected you will be notified by mail. If you do not respond to the request, they will deny your refund. If you don’t file an appeal within 60 days, the state will keep your refund. This process might be a nuisance, but it prevented over $63 million of fraudulent returns in 2015 alone.