Hopefully you've been feeling a little better about the stock market over the past two months. If you mustered the courage to open last month's statements, you'd likely see that your accounts increased for the first month since December. My guess is April's will show additional improvement. While we're not out of the woods, it does appear that we're on the right track.
Sharpening the Saw
I have taken time this year to attend conferences hosted by various companies to learn more about how they operate and to hear their opinions on the future of our economy/markets. My most recent trip took me to Morningstar's headquarters in Chicago.
I learned more about how Morningstar's rating system works and their plans for the future. While I use three to four rating agencies when I review each investment, it is good to know the details of how each determines its "style boxes." While two funds they rate could both be in the same box, when you lift open the hood and look more closely they could have very different investment styles. Their new approach will allow for closer inspection and better comparison of investments.
During the conference, I was also able to speak with portfolio managers about their investments and their outlook for 2009 and beyond. One of the managers had a very similar opinion of the future to mine. He and I spoke in detail about our reasoning and explained our thoughts to other advisors from across the country.
Most advisors with whom I've spoken over the past year or so have been telling clients to stick with what they have and ride out the storm. I'm glad that I worked with most clients to maintain a higher cash level over the past two years. Many also utilized alternative strategies to help lesson the impact of the downturn. We're now getting back into the market as we look for short-term growth and income needs in the event that we have a 70's-like "flat" market over the next three plus years. While no outlook can be guaranteed to occur, I prefer having a strategy I believe in than sitting back and hoping for the best.
Office News
Woody will be out of the office for a mixed business and personal "vacation" to New England from May 15th through the 25th. The office will be open on the 18th, 20th, and 22nd, so you're welcome to contact Heather with any questions you may have.
Thank you to all who have expressed concern for Fenway and his recent hip woes. Since he's started on his meds, he's been doing much better.
I'm looking forward to visiting my youngest sister in mid-May as she graduates from Boston University. It's strange to think of her graduating college as it seems like yesterday that she was my "baby sister." The good news for me adapting to reality is that Kelsey is an over achiever. She'll be working towards her MD degree at Boston U. in September, so I'll have a few more years of denial.
Baseball season started late this year due to our unusually wet spring. We won our first game in convincing fashion in a lopsided 12-0 victory ending early due to the league's mercy rule. I'm still adapting to seeing 3-D, but I believe that I'll get acclimated after a few more games and trips to the batting cages.
Heidi's kickball team got off to a rough start, but has been coming on strong during the past few games. Heidi's been playing well and having fun (which she says is the most important part-I'm still learning that "you don't have to win to have fun." I'm not quite there yet, but if we keep winning I won't have to worry about it too much).
I hope you enjoyed this month's newsletter. If you know of someone else who may find this newsletter of value or who you believe may need our help, feel free to forward our newsletter to them by using the "forward email" link on the bottom left of this page.
Available by Appointment in Alexandria & DC. Woody Derricks is also registered to discuss and transact securities business in: AK, CA, CT, DC, DE, FL, MD, NJ, NY, PA, RI, VA, and VT.
