Friday, October 31, 2014

Investor Letter Fall 2014: Sailing Into The Wind

HORAN Capital Advisors recently published its Fall 2014 Investor Letter. The consensus view at the start of 2014 was interest rates would rise and economic growth would be globally synchronized led by the U.S. Now three quarters of the way through 2014, it appears economic growth in the U.S. is the only consensus viewpoint being realized.

Although we are just a month past the end of the third quarter, September 30th seems a distant memory. The third quarter ended on a weak note for most asset classes. In the Investor Letter we note headwinds that impacted the equity markets and resulted in equity market performance in the third quarter being the weakest since the third quarter of 2011. The beginning of the fourth quarter has continued to be volatile even with corporate earnings releases progressing better than expected.

The 10‐year treasury rate at the beginning of 2014 was 3.03%. The 10‐year treasury ended the third quarter at 2.3% and just recently hit a low of 1.87% on October 15th. The October 15th rate plunge occurred on a day when the Dow Jones Industrial Average swung 458 points, nearly 3% from high to low. For perspective on our views for the balance of the year and into 2015 one can read our Investor Letter accessible at the below link.

From The Blog of HORAN Capital Advisors

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