Market Summary
April 2014
In what is historically a strong quarter for U.S. equity markets, 2014 saw its first quarter end without hurrah. To sum up the quarter in one word-FLAT.

In fact, here are what the three main Indices used to gauge U.S. markets have done since their December 31 peaks:

Dow Jones: -.79%2

S&P 5001: +1.24%2

Nasdaq: +.50%2

Gold and Bonds outpaced the markets for the quarter, with International and Emerging Markets flat to slightly negative.

There are a few possible reasons as to why markets are finding it difficult to push upward.

First, growth in Asia has rapidly been slowing, led by China, where manufacturing data continues to drop month after month, and their credit bubble appears to be rolling over.

Second, tensions in Ukraine and Russia's subsequent invasion and annexation of Crimea certainly put markets at unease for a short period of time.
Our Management Philosophy

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.

 

Walter J. Reyna, Inc.
5315 North McColl Road
McAllen, Texas 78504 
956.682.4196 

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Market Summary Continued
Third, we here in the U.S. fell victim to one of the worst winters in decades. Subsequent economic data has come in weaker than expected, and markets are wondering whether this was a result of slack consumer demand or the adverse weather.

Either way, it has become pretty evident that upward momentum has been difficult to build. It was our contention earlier this year that we could see a larger pullback within the late spring to summer months. With the Fed continuing to taper its stimulus program by 10 billion a month, could we be setting up what is considered a long overdue price correction in the markets? We think the upcoming earnings season will be scrutinized far more than the past few quarters have been, to try and give us an idea of which direction markets could go in the spring and summertime.

At this time, we want to continue to hold our equity positions, but if the weakness in growth-oriented stocks (especially those on the Nasdaq exchange) spreads to other groups, then it is likely the general market will enter a correction period.  But, if the markets can hold up at current levels, that could signify a new uptrend and we may look to increase equity exposure.

 

One last note... with tax time quickly approaching, we did want to remind anyone considering an IRA contribution to get them in before April 15th. 

 

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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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