Market Summary
March 2014
After a negative January, February saw U.S. markets bounce back and recoup most of their losses by the end of the month.

However, it has been another asset class that has once again started grabbing headlines-metals.

I'm sure many are quite aware of the decline of gold from late 2011 through 2012 and into 2013. It has been our position that gold had been in a 12 year run, and a correction of some sort was necessary. 

Now, coming into March, gold is one of the leading performers, with gold bullion up over 12% 2 to start the year.

Does this mean we are out of the gold correction? For the short term, we cannot answer that. However, it has been our opinion from the beginning that gold will eventually push upwards because of what we believe to be the eventual rise in inflation coupled with a devaluation of our dollar. With gold looked at as a safe haven, instability around the world can and will contribute to this as well.

Finally, an interesting editorial came across our desk recently, and I thought it important to share some of it as it pertains to the economy and what could be coming on the horizon.

Copper, because of its industrial use, is a leading economic indicator, and its price fluctuations are used by economists and analysts to determine the state of the global economy.  By "leading economic indicator," I mean that copper rallies in advance of economic strength and declines ahead of contractions.  
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Limit downside risk and provide clients a reasonable rate of return over a market cycle.

 

With over five decades of combined money management experience in South Texas, you can be sure that Walter and Anthony Reyna have seen it all. This father-son pair built and developed Walter J. Reyna Inc. on the importance of hard work and strategic planning and continue to implement these core values in their business today.

 

The Reynas believe that wealth accumulation and protection are the result of exceptional planning, not luck. Visit our website to learn more.

 

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956.682.4196 

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Market Summary Continued

A chart from StansberryResearch.com is very telling:

 

Jeff Clark from GrowthStockWire.com states, "Copper looks poised to test the 2010 support line down at $2.75 per pound. If that fails to hold, the next downside target is $2.25... The price of copper has fallen 33% over the past three years. And it looks like it's on the verge of another major move lower." 

 

Clark continues to state, "Up until recently, we could have pointed to the general downtrend in prices over the past three years and dismissed the action in copper as part of the commodity bear market. But we can't do that now. Gold is up around 13% this year. Silver is up around 10%. Oil has rallied around 8% from its January low. Natural gas exploded higher last month. And agricultural commodities are up 20% or more in 2014."

 

"In other words, all of the commodities that are the most sensitive to the velocity of the money supply (how quickly money is moving through the economy) are screaming higher. Meanwhile, the one commodity that is most sensitive to economic output is on the verge of collapsing," says Clark. 

 

Some food for thought when trying to gauge the course of the economy and markets over the next 6-18 months.  

 

Visit our website to learn more. 

 

For more information about your portfolio performance, please refer to your personalized statements or contact us. Regulatory restrictions prevent us from reporting personalized performance data in this newsletter. See below for important disclosures. 
Portfolio Insights
(1)The S&P 500 Index is representative of domestic markets and includes the average performance of 500 widely held common stocks.  Individuals cannot invest directly in any index and unlike investments; the S&P 500 Index does not incur management fees, charges, or expenses. (2) All Statistical information, investment category determinations, and economic data retrieved from www.bloomberg.com. Past performance is no guarantee of future results and all investment strategies involve the risk of financial loss. 

 

This publication is proprietary and limited to the sole use of Walter J. Reyna, Inc. clients.  Client portfolios are designed for the moderate investor but are actively managed on a monthly basis and may not follow traditional risk adjusted asset allocation models. Walter J. Reyna, Inc. maintains full discretion over said accounts and manages as deemed necessary. Clients with questions about the fees associated with their discretionary advisory account should refer to their advisory agreement. The information contained herein is for illustration purposes only. It is not necessarily complete, does not include client directed investments, and its accuracy is not guaranteed by Walter J. Reyna, Inc.  All clients should reference their periodic statements for accuracy. All clients needing additional information about holdings in the portfolio, including the objectives, risks, asset class and costs associated should refer to their respective prospectus. If you have received this communication in error, please notify us immediately by e-mail or telephone.  Neither the information, nor any opinion expressed constitutes a solicitation nor investment advice, for the purchase of any future security referred to in the Advisory Newsletter.  Investments offered through Registered Representatives of Lincoln Financial  Securities Corporation, member SIPC.  Lincoln Financial Securities Corporation and Walter J. Reyna, Inc. are not affiliated.  

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