The year now ending has been amazing in a number of ways. The investment markets and developments here at 228 Main contributed to an unusual period for you and us.
In the markets, the things that hurt us in 2015 helped us in 2016. Last year we wrote that the bargains we owned kept getting cheaper. We kept the faith and continued investing in our themes, and the trend changed with a vengeance, to your benefit. One might say that things went our way in 2016.
Our research and trading capabilities were on display all year. When bargains appeared in resource-related high yield bonds, new trading protocols were required. It took new ways of doing things to trade in scores of accounts in a day. We developed strong relationships with good people on the bond trading desk at LPL Financial. Now our capabilities are greater than ever.
Our communications program in the new media continued to build and evolve. www.228Main.com has become a fairly complete library about our philosophy, strategy, methods and tactics. About half of our clients check in daily to see what we think is most interesting or pertinent, via one of three social media sites. The efficiencies we’ve gained by using new media have enabled us to make more outbound on-on-one calls, too.
Back in the real economy, new jobs were created each month. Retail sales and most measures of economic activity moved higher through the year. Business profits are rebounding after a lull. We believe our main themes are appropriate for the times, and sensitive to current conditions.
Our principles remain unchanged, but we are always seeking to improve our strategies and tactics. Avoiding stampedes, owning the orchard for the fruit crop, and seeking the biggest bargains are always going to make sense. We will have to be more effective and efficient than ever, both to perform for you and to meet new regulatory pressures.
Goodbye, 2016! We’ll build on the improvements we made, and use what we learned to seek more opportunities for you. Please write or call with comments or questions.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
No strategy assures success or protects against loss.