June 24, 2013 (DJIA 14,659.56, S&P500 1575.52)
The Five Year Treasury rate (^FVX) is at 1.440%, it was at 0.54% on July 24, 2012. 5 year Rates have increased 266% since July 2012. This is up 35% since May 31, 2013.
The Ten Year Treasury rate (^TNX) is at 2.554%, it was at 1.394% on July 24, 2012. 10 year Rates have increased 83% since July 2012. This is up 16% since May 31, 2013.
The Thirty Year Treasury rate (^TYX) is at 3.587%, it was at 2.452% on July 24, 2012. 30 year Rates have increased 46% since July 2012. This is up 8% since May 31, 2013.
We are mindful of the economy as we deploy our monies for investments. Corrections of up to 20% are historically normal. Anyone that invests with us, or who is familiar with our methods, should be very aware that we do not time markets, and we do not believe that any investor can pick the tops or bottoms. If we like a company at $100 per share, we typically like it even more if we can buy it on sale at $85 per share.
We think the economy is stable to growing, interest rates are still at historic lows, and we would not be surprised to see them much higher in the future, yet we are clearly not predicting the moves in interest rates. We also think that most if not all investments in our portfolio are still value priced when we apply or study their long term histories and fundamentals.
As always, we welcome the opportunity to discuss our outlook and investments with you.
Please feel free to contact me with anything you would like to discuss. Feel free to ask general questions on our Facebook page as well.
Again, Please see our note on this subject from May 23, 2013. http://rbcpa.com//commentary/rates-have-continued-to-rise/may-23-2013/
Ronald R. Redfield cpa, pfs
Redfield, Blonsky & Co. LLC
15 North Union Avenue
Cranford, NJ 07016-1103
908 276 7226 phone
908 276 7274 fax
If you are a client of ours, and if you have questions regarding the company or investment mentioned in this report please call our office. If you are not a client of Redfield, Blonsky & Co. LLC Investment Management Division and are reading these notes, we urge you to do your own research. We will not be responsible for any person making an investment decision based on these notes. These notes are a “by-product” of our research. We are not responsible for the accuracy of these notes. We are not responsible for errors that may occur in these notes. Please do not rely on us to monitor or update this or any other report we may issue. In theory, we could come across some type of data or idea, which causes us to eliminate our long or short position of the company or investment mentioned in this report from our portfolios. We will not notify reader’s revisions to these notes. We are not responsible to keep readers of these notes updated for changes or material errors or for any reason whatsoever. We manage portfolios for clients, and those clients are our greatest concern as it relates to investing. Certain clients of Redfield, Blonsky & Co LLC may not have the company or investment mentioned in this report in their portfolios. There could be various reasons for this. Again, if you would like to discuss the company or investment mentioned in this report , please contact Ronald R. Redfield, CPA, PFS (partner in charge of investment management division).
Information herein is believed to be reliable, but its accuracy and completeness cannot be guaranteed. Opinions, estimates, and projections constitute our judgment and are subject to change without notice. This publication is provided to you for information
- Redfield, Blonsky & Co., LLC (RBCo), only transacts business in states where it is properly registered, or excluded or exempted from registration requirements.
- Past performance assumes reinvestment of dividends and other distributions and may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by adviser), or product made reference to directly or indirectly in this presentation or on our website, or indirectly via a link to any third-party website, will be profitable or equal to corresponding indicated performance levels. The investment return and principal value of an investment will fluctuate and, when redeemed, may be worth more or less than their original cost.
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- Historical performance results for investment indexes, such as the S&P 500, generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results of the S&P 500 Index. Whenever RBCO performance is referred to, results have been reduced by all fees, including RBCO management fee.
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