September Market Volatility
Over the past few weeks we have seen a return of volatility to the markets. While we are frustrated with the recent market correction and it’s impact on our portfolios, we are encouraged that this is merely profit taking and some window dressing at the end of the third quarter. Some of the stocks selling off the most are those positions that have had the best performance since the start of the year. We have been proactive during this period and taken profits on two stocks in our Balanced Portfolios while also adding to two other investments when opportunities presented themselves. The S&P 500 has shown surprising resilience during this period while broad market measures like the Russell 3000 and Small Cap stocks of the Russell 2000 are down much more.

Bill Gross Leaving PIMCO
The breaking story that is continuing to develop is the departure of Bill Gross from PIMCO, a firm he founded 43 years ago. While his headline grabbing news will certainly have an impact on their firm in the short term and lead to redemptions, we believe that the direct impact on the funds we are invested in will be minimal. Only one of our Bond Funds was managed directly by Mr. Gross, but what we learned in conversations with company management is that this transition was initiated by PIMCO and had been planned for well in advance. While they did not anticipate Gross leaving with such haste before they could make an announcement, his succession plan had been enacted and new portfolio managers announced by that afternoon. If you have questions or concerns on any specific funds we are in, we welcome you’re calls or emails on this topic.

Time For Tax Planning
With year-end fast approaching, the next two months will be the time to sit down and review your 2014 tax picture. Harvesting gains, taking losses, doing Roth Conversions, are three of the many things it is always important to explore. We look forward to meeting with you and working through this process as well as giving you a more detailed update on the portfolio.