20 Commerce Parkway,
December 31, 2012
Here is a recap of 2012, and a hopeful prognosis for the year 2013.
I have been patiently waiting for a “Fiscal Cliff Resolution” all day, prior to writing this letter. Today, the news is, there is no news. Republicans and Democrats are pointing fingers at each other, without resolution. Rumors of an agreement have just pushed the Dow Jones Industrial average up over 140 points.
There are talking heads predicting 2013 market moves, setting prediction prices for commodities such as gold and oil, and in general, reading crystal balls for the general public’s consumption.
Not to be outdone (ahem, please note the throat clearing, so that I may be heard clearly):
I HEREBY PREDICT THE FOLLOWING FOR 2013: Stock prices will rise (and fall), Bond prices will fall (and rise), Inflation will fluctuate, the dollar will gain and lose strength versus foreign currencies, 401(k) balances will rise and fall, politicians will argue with one another, countries will agree and disagree on foreign policies, trade policies, etc., the sun will rise (and set), people will be born, people will die, parents will strive to provide their kids with opportunities to thrive, and America will continue to be a thought leader and defender of basic human rights around the world.
Please keep in mind, every prediction that I just made in the preceding paragraph will happen. Also keep in mind that nothing that I just predicted means anything by itself.
What truly matters is how we react to the events that unfold around us.
In 2012: markets went up and down, a presidential election took place that divided our county among political factions, people were born, people died, natural disasters hit, etc.
At Deacon Wealth Management, we look at portfolios in much the same ways that doctors treat patients. We assess a client’s situation, and our initial step is “First, Do no harm”.
The financial markets in 2012 did much as we expected them to do in my “Open Letter to Clients”, an excerpt here: What does all of this mean to us in the long run? To me, it means that we need to keep our eyes on the horizon and ignore the “daily noise” that inundates us via our 24 hour news stations. It is time to review 2011 for you, to recap 2011 and set a course for 2012.
In 2012, we at Deacon Wealth Management again appreciate your trust and friendship. It’s the same song, new verse. 2012 saw our firm navigate some interesting times and challenges. We kept our focus on long-term success for our clients, which has resulted in another great year for our firm.
Let’s get together to review 2012 and set a course for 2013!
Darryl G. Barnes, President
Deacon Wealth Management
SECURITIES OFFERED THROUGH LPL FINANCIAL, MEMBER FINRA/SIPC