BARRINGTON FINANCIAL ADVISORS, INC.
a Registered Investment Advisor
(Celebrating 42 years of Professional Service)
JANUARY 2015 OUTLOOK
January 6, 2015
I guess you saw the Holiday rally fizzle out at the last few days of 2014 reducing our performance from about 5%-10% in our accounts down to a low single digit percent. So here we start 2015 and oil is still pulling down the markets to say nothing for the global financial turmoil in Europe, China, Russia and many of the smaller economic countries.
With this in mind, I feel the market risks were too high given the potential for return. Therefore, I have sold a number of our holding going to cash to see what the markets show us in the coming weeks. Among the positions sold were: SWIR, SWKS, MELI, MU, LL and XOM. This will raise the cash position in most account to 35% to over 50% depending upon the account size. Most all of the energy holding have now been eliminated in view of the oil price decline. Also, we have decrease our exposure to technology as it is a volatile asset class currently. I plan to make additional moves depending upon the direction of the market and the price of oil.
With all the stock & bond market volatility, it is good that we have allocated a portion of your portfolio to income producing real estate, which seems to be stable during these turbulent times.
Again, I caution all of us to be patient and let the markets do what they always do during down markets and that is to regress to the mean. In other words, if the market goes down it will go up again if we just give it time. Thank you for your patience and loyalty.
I wish all of you a Very Blessed Happy New Year.
Have a Blessed Day,
William C. Heath, CFP®
Chairman & CEO
Barrington Financial Advisors, Inc.
9800 Richmond Avenue, Suite 250
Houston, Texas 77042
(877) 342-6999
