Beruflich Dokumente
Kultur Dokumente
Q1 2013
AMM
AMERICANMONEYMANAGEMENT,LLC
SECRegisteredInvestmentAdvisor
POBox675203,RanchoSantaFe,CA92067Tel8889991395Fax8663641084info@amminvest.comwww.amminvest.com
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(TheBigPicturecont.)
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(WhereWeAreInvestingNowcont.)
Bonds: Thebiggestchallengefacingconservativesaversandinvestorstodayisgettingafairreturnontheirmoneywhile ensuringminimalrisktounderlyingprincipal.Givenourviewof10yeartreasuryreturnsdiscussedabove,wedonot viewthisasafairreturn.Still,conservativeinvestors,especiallythosewithashortertimehorizon,cannotnecessarily affordthevolatilitythatcomeswithinvestinginhigherreturnissues.Volatilitymaynotbetruerisk,butifyouhavea shorttimehorizonyoumaynotbeabletowaitforvolatilitytoworkinyourfavor.Forthisreason,wehavefocusedthe coreofaconservativebondportfolioinhigherquality,shortermaturity(i.e.lowerinterestraterisk)bonds,blendedwith smallerpositionsinmoreaggressivefloatingratenotes,unconstrainedbondstrategiesandemergingmarket/interna tionalbondsinordertoboostoverallportfolioyield.Whiletheyieldsonshortertermbondsarerelativelylow,thena tureoftheshortmaturity,typically<5years,shouldallowustoreinvesttheproceedsathigheryieldsinthefuture.
Forlessconservativegrowthandbalancedaccounts,wecontinuetoinvestinfloatingratenotes,unconstrainedstrate giesandinternationalbondsbuthavemaintainedminimalexposuretolowyieldinginvestmentgradebonds.Floating ratenotesaretiedtoanadjustableratelikeLIBOR;asratesincreasesoshalltheyieldonthesenotes.Unconstrained bondstrategiesfocusongeneratingreturnsinanyenvironmentsotheycanadjusttheirsensitivitytorisinginterestrates andinflation,investoutsidetheUSdollarwithaportionoftheirportfolio,andshort(i.e.betagainst)varioussectorsof thebondmarket. Stocks:Weremainoptimisticaboutstockreturnsoverthelongrun.Overtheshortruntheuncertaintycloudrelatedto thefiscalcliffappearstohavecleared,andglobalstockmarketshaverespondedwithanicebouncetostarttheyear. Still,itisonlyamatteroftimeforanewuncertaintycloudtorollin(forthcomingdebateoverthedebtceiling?)that couldcreateamorefavorableentrypointforclientswithinvestablecash.Inthemeantime,longtermvaluationsremain reasonablerelativetohistory(seetablebelow)andmostotherfinancialassets;so,weintendtoholdcurrentexposureto stocksacrossportfoliostrategies. S&P 500 Valuation Measures** 12/31/2012 1 year ago 3 year avg. 5 year avg. 10 year avg. 15 year avg.
Price to Earnings Price to Book Price to Cash Flow Price to Sales Dividend Yield
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Michael Moore
Chief Investment Officer
Glenn Busch
Portfolio Manager
Adele Canetti
Portfolio Manager
Robert Frazier
Investment Advisor
Bryan Case
Investment Advisor
John Nyaradi
Investment Advisor
John Turner
Investment Advisor
Gary Ernst
Investment Advisor
Vicki Ohara
Operations Manager
Lili Waters
Administration
AMERICANMONEYMANAGEMENT,LLC
14249RanchoSantaFeFarmsRoad,POBox675203,RanchoSantaFe,CA92067 www.amminvest.com
Tel:(858)7550909
Tel:(888)9991395
Fax:(866)3641084 Email:info@amminvest.com