Dear Client,

Happy New Year! Happy in the financial markets is questionable, though, as we opened up 2016 with one of the worst weeks in history. This comes on the heels of the Federal Reserve raising rates toward the end of last year and China devaluing their currency. With all the calls we have been receiving, I would like to give you my perspective.

First off, investor sentiment is very funny. When you go to buy a car and the dealer tells you they will give you 20% off, you feel great and feel like you are getting a good deal. When you hear about Nordstrom’s semi-annual sale and their clothing is 15-20% off, you flock to the store to take advantage of the deals. Yet, when the stock market drops 10%, we receive calls from our clients thinking it’s time to jump out of the markets. This is the classic example of fear and greed.

Our memories of what happened in 2008 and 2009 are still imbedded in our minds. Every time we have a market pullback, the memories re-emerge. Our fear gauge rises and we wonder whether we should act or sit tight. Jay and I think you should just sit tight unless something has changed in your life or goals. We believe the current market environment is a normal pullback. The US economy seems to be humming along despite what we are hearing from China and the rest of the world. In 2016 the fluctuating price of oil, the impending presidential election and the Federal Reserve’s policy on raising rates are all a concern. The markets do not like uncertainty and until these issues are settled, we will continue to see unpredictability. 2016 is going to be volatile so strap yourselves in.

Lastly, we have hired a new junior associate to assist us in the administration and development of business plans for our clients. Her name is Kerry Nelson and she recently moved to the Bay Area from Oklahoma. Not only does she have a passion for helping people with their financial goals, she is studying to get her Master’s degree in financial planning. Feel free to call our office and introduce yourself and she looks forward to meeting you all and helping you attain your goals.

I hope 2016 is a healthy and prosperous for you and your family. We look forward to seeing and talking with you this year.