Welcome to 2014! I hope your Holidays were fantastically fun and that you enjoyed a festive New Year. I’m please to report that we had a wonderful Holiday season. One of the things that made it so special was the birth of our second daughter: Rowan Marie McCann. She arrived on November 17th – two weeks early. She was actually due on Black Friday, the day after Thanksgiving. I think she wanted to avoid the crowds. Already a smart girl. The whole family is doing wonderfully.
I thought this quarter would be a great time to follow on our last discussion regarding Reversion to the Mean. Over the course of this year, we will re-balance our clients managed accounts. So this is a great time to discuss some of the mechanics of managing your asset allocation…
October has arrived and the excitement is palpable in the Bootstrap household. A burning question needs to be answered in the next several weeks: What is Quinn going to wear as a Halloween costume? Last year we lived in a neighborhood with very few families, but this year we live in family friendly Willow Glen. We expect a veritable onslaught of sugar-crazed kids at the door. Colleen is so excited she can hardly contain herself.
I think everyone knows how I feel about Fall. Since the pace is a little slower this season, I thought I would take some additional time to write about one of the core investing concepts I think about at Bootstrap Capital. It’s called Reversion to the Mean…
I thought I would take a moment between barbeques to pen my quarterly letter. I’ll make this one brief, so we can all get back to some fun in the sun.
Anyone that has been following the financial press lately, has noticed that Ben Bernanke and the FOMC (Federal Open Market Committee) have gotten a little heat lately for their hinting that they may slow down Quantitative Easing. What I heard is: “There is the possibility, that sometime, maybe, if the economy continues to be hunky – dory, that we may think about slowing down our massive purchases of government bonds and mortgage backed securities…” Or something like that. What did most market participants hear?: “Run for the hills!” The reaction in the bond market was swift, the 10 yr Treasury yield rose from 2.2% on June 18th to 2.5% on June 21st.
Given the change, I thought it would be a good time to review the impacts on our current strategy for bond holdings in client portfolios.
Dear Clients and Friends,
I hope you enjoyed a festive Holiday season! Now that the wrapping paper is thrown away, the food is eaten and the dieting starts, my favorite time of year begins. It's "Prediction Season" in the financial press. No doubt you will hear breathless pundits talking about where the market is going, what the Dow will be in 2013, and if American Idol will be around for another year. There are a couple ways to go when making predictions. One philosophy is:
"If you are going to make predictions... predict often." - Anonymous
By now, most of you are accustomed to hearing from me at the beginning of each quarter. But due to the recent market volatility and increasingly negative news, I thought I'd drop a note just to let everyone know my thoughts on the current market climate. Although in advance, I must commend all of you on your calm demeanor over the last several weeks and months. At this point, I have communicated with most of you via phone or e-mail, and no one has displayed any desire to abandon their investment discipline or make any type of emotional trading decisions. I have great clients.
Dear Clients and Friends,
I hope everyone is having an enjoyable summer! Here in San Francisco, summer means it is cold, foggy and windy. Fortunately, by the time you read this, Mrs. Bootstrap and I will have jetted off to sunny, hot Atlanta for a weekend of family, fun and warmth. Before I leave, I wanted to share with you my view on a very important investing topic.
Dear Clients and Friends,
Welcome to the inaugural Quarterly Letter for Bootstrap Capital! I’d like to start by thanking those loyal friends and clients that have chosen to join me as I launch this enterprise. As most of you know, I became an advisor and started Bootstrap Capital because I am committed to helping people grow their wealth over time. I am honored by your trust and support; and I am excited that you have chosen to join me.
The financial services industry has a vested interest in making financial planning seem incredibly complicated. Don’t get me wrong – it can quickly become complicated. But I firmly believe that Financial Planning can and should start with very simple, basic concepts that are easy to understand. Hopefully by creating a simple foundation, we will limit complexity as much as possible. At the end of the day, the best plan is one that a client can understand and feel comfortable with.
Note: The contents of this site are general in nature and not intended as specific investment advice. All investments are subject to risk; including loss of investment value. If you have any question regarding investments or concepts in these pages, please consult with an investment professional.