Simple Pleasures

1 - The stock market lost ground last week, bringing the losing streak to six weeks; the last time that happened was nearly nine years ago. Before you get too depressed, though, check out the article below entitled "Reasons for Optimism." I have been reviewing many client portfolios, and for the most part, things still look pretty good overall, although it is shaping up to be a losing quarter for most clients.

2 - Our movie event for veterans of World Ward II was successful and fun. What an honor it was to just spend time in the presence of so much living history. Along with the guests of honor, there were quite a few others there to watch the movie and express their gratitude.

3 - The 18th annual Blue Ridge BBQ Festival (last week's update incorrectly said it was the 17th) appears to have been a success. It certainly was a success as far as crowd size and visitor fun. As for the financial question, it's now a matter of adding up the debits and credits over the next few weeks, but I'm cautiously optimistic.

They say a change is as good as a rest, and that seems to be true in my case. These days, my job at the festival involves managing traffic flow. Although it is physically and mentally demanding (think two 18-hour days followed by an exhausting clean-up), it exercises completely different parts of the brain and body than does my day job. So today I'm a little tired but strangely refreshed. Go figure.

Have a cool week!

-Andy

             A good time was had by all:

 Libbie took this photo during intermission on Monday. They are veterans all, and all but three of them served in WWII.

I took this photo from behind the stage at the Blue Ridge BBQ Festival on Saturday at 7:51pm.  

D-Day Special Event & A Little QQB Fun!

1 - The Dow Jones Industrial Average lost 2.3% last week; that's five weeks in a row that stocks have been down, and the market is off 5% from its recent high in May. But a news story by Reuters indicates that most investors are more cautious than panicked.

The recent slew of unsettling news -- weak jobs data, government debt squabbles, European debt problems, and unrest in the Middle East, among others -- has been building for some time. We need to understand that our economic problems are not over. Things will likely be rocky for some time to come. As is always the case, we need to be vigilant an continue to work our plan.

2 - Before we get too caught up in 2011's problems, we should consider what it must have been like to live through a real life-or-death struggle. Today is the 67th anniversary of D-Day, and along with the Tryon American Legion post, we are saying "thank you" to local World War II veterans by screening The Longest Day. The movie is a re-enactment of D-Day; it stars John Wayne, Henry Fonda, Richard Burton, Robert Mitchum, and nearly every other male actor who was famous in 1962. The show starts at 1:30pm on the big screen in the Depot Room. If you can, come spend the afternoon with us while we honor a few members of the Greatest Generation.

3 - This week also marks the Blue Ridge BBQ Festival's 17th anniversary. This is the biggest community event in Polk County, and I, along with hundreds of others, will be volunteering yet again. On Friday night (which is also graduation at Polk County High), up-and-coming country music artist Chuck Wicks will perform, and it looks like my parking crew may have a challenge on its hands. At least I hope so.

Have a cool week!

-Andy

             D-Day:

 

Where They Landed: Americans, Canadians, and Brits departed from various points in England and converged on the beaches of Normandy.

Ike talks with troops before sending them into harm's way on June 6, 1944.

Love - Honor - Country

1 - Please remember our upcoming event: this coming Monday, June 7, at 1:30pm, we will be showing the classic D-Day movie The Longest Day. The purpose of the event, which we are presenting in conjunction with American Legion Post 250, is to honor our World War Two veterans. Our event coordinator Libbie Johnson reports that we have received RSVPs from over 30 veterans and their spouses. If you know any WWII veterans, please encourage them to call us and reserve their spot -- and please come yourself if you can.

2 - Speaking of veterans, Memorial Day weekend is always a great time to remember the sacrifices made by countless ordinary and extraordinary men and women so that we can enjoy the good life. I spent much of the weekend watching classic war movies, which always helps bring the message home for me.

3 - Juliet and I recently completed two one-day training programs with important technology providers. The first was an in-depth update from AssetBook, the company that provides our portfolio management software (the program that provides our client reports and performance calculations, among other things) at their headquarters in Maryland. The second was a training day in Atlanta with Redtail, which provides our CRM (client relationship management) program. Both systems are vital to our day-to-day operations, and the sessions were very valuable.

Enjoy your week!

-Andy

Expect Nothing; Place No Bets

The stock market declined again last week, marking the third consecutive week of negative returns.

Many of us have been wondering when the markets would reverse their steady (two years now) upward climb. Such a decline would be natural following any long period of strong gains. A correction is not something to be feared; it is a healthy sign of a functioning market. Trees do not grow to the sky, and stock markets do not rise unceasingly.

There are many factors at work right now that could lead to lower markets ahead. A still-sluggish economy, the procrastination of our governmental leaders regarding the debt ceiling (see article below for more details), worries about inflation, and the results of a prolonged rally are just a few of those factors.

Does that mean that we should expect a bear market? Actually, no. Nor should we expect the bulls to keep running. In point of fact, my recommendation to you -- and my constant personal policy as well -- is to resist the temptation to expect anything at all. I'm not a betting man, and I'm not willing to place bets with my clients' money.

Here's why: The factors mentioned above are all easily discernable to anyone who is paying attention. But, like invisible currents in the atmosphere, there are myriad other influences at work as well. All of those factors -- large and small, visible and invisible -- combine to determine the direction of the markets at any given point in time.

The sentiments and emotions of Wall Street traders and financiers, current events in Washington and Hong Kong and London and Athens and Tripoli -- even events in Tryon and countless other anonymous communities across the globe -- all intermingle to form an ever-changing current that drives the worldwide market.

Nobody can hope to fully understand that current, much less try to predict where it is headed at any given moment. So we don't worry about what we can't change. We just try to position our portfolios for as many possibilities as possible.

Now, consider the amazing fact that we are all part of of the pulsing organism that is the world economy. When you think about it, it really is a wondrous thing -- scary I grant you, but wondrous nonetheless.

Have a great week!

-Andy

     Last week we introduced you to Bonnie Armstrong, who is working with us from her home base in the Washington, DC area. This week we'd like you to meet Libbie Johnson, our new Event Coordinator and Manager of the Depot Room.
     I never fully introduced Libbie's predecessor, Tabatha Cantrell. Tabatha and I have been friends a long time; she agreed to help jump start our Depot Room project when we made the move in January, and I don't know what we would have done without her. She recently left us to pursue other opportunities, particularly in her specialty of private event planning. We are grateful to Tabatha and expect that we will be working with her on future projects.
     And now we have the great good fortune to be joined by another of my good friends, Libbie Johnson. She brings a wealth of experience and talents to her new position. Best known locally for her work in promoting the vital equestrian economy, she also has extensive experience in marketing and event planning. Most important, she is a go-getter with a great sense of humor and can-do attitude.
     Libbie's skills include writing, (her weekly email newsletter, This Week in Tryon Horse Country, is informative and entertaining) and technology (see her two websites, TryonHorseCountry.org and OurHorsesMeanBusiness.org).
     I'll stop here before I get carried away. Suffice it to say that we are excited to have Libbie on the Millard & Company team!

A Special Event for WWII Veterans

On June 6, 1944, about 100,000 American, British, and Canadian troops stormed the French beaches of Normandy to begin the long and bloody process of wresting Europe from the iron grip of Adolf Hitler.

That was almost 67 years ago, and the ranks of those young men -- and indeed the entire population of World War II participants -- is rapidly dwindling. Those still living are in their eighties and nineties. Yet we owe these people so much, it seems appropriate to try to do what we can to show them our appreciation.

In conjunction with the local American Legion Post 250, Millard & Company will hold a special event on Monday, June 6. At 1:30 that afternoon, we will be showing the 1962 movie "The Longest Day," a classic star-studded spectacle that relives the many events of that momentous day. Our new event coordinator, Libbie Johnson (more on her later), has been busily inviting local WWII veterans, and the event is filling up fast.

The event will be pretty simple -- we're just going to watch the movie and have some snacks and fellowship -- but the message is simple as well: thank you.

Once we know how many veterans to expect, we will begin accepting RSVPs from others as well. (The Depot Room has a total capacity of 80.)

Stay tuned for more information about this exciting event.

In other news, the debt ceiling debate is about to kick into high gear (see the article below). Hang on to your hat, and have a great week!

-Andy


Meet Bonnie:

Bonnie Armstrong (pictured to the right of Juliet) has joined the Millard & Company team as a long-distance special projects consultant. Bonnie lives in the Washington, DC area, but the marvels of modern technology allow her to work from there as effectively as if she were in the office with us. Her role is to help us with back-office projects -- and she is good at it, having worked with other advisors in a similar capacity and having an established relationship with TD Ameritrade. We like her a lot!

Celebrations in Polk County

It was a great weekend for the Millard Family. On a Mother's Day that started out rainy but cleared up just in time for the ceremony, our son Drew graduated from the University of North Carolina at Chapel Hill along with about 6,000 of his closest friends. Juliet's daughter Adriana also graduated from Bob Jones University, making it a proud time for Millard & Company.

Each individual graduation is a big "mission accomplished" moment for an entire family -- in Drew's case, nine family members were there to share in it -- but it is also a daunting time of closure and uncertainty for the graduate.

Drew told me that, after four years of college, the most important thing he has learned is that he knows nothing. It seems to me that such a realization may be the best possible outcome of a quality education. If properly viewed, it can lead to a healthy humility and a determination to make a mark on the world in spite of any odds.

Watching the ceremony, seeing the camaraderie between such a large group of young people, and witnessing the rituals and traditions, one is struck by the feeling that each of these new adults, like those of us who have gone before and others who will follow generations hence, is a part of the long procession of history. It sort of puts our everyday endeavors into perspective.

This is the only shot we will get at this week, so let's make the most of it!

-Andy

Rise and Fall

1 - Last Thursday's workshop on rebalancing was very well attended, with a total of 49 clients participating in one of the event's two sessions. Clients seemed to enjoy getting a glimpse into one aspect of the portfolio management process. We are planning to have an ongoing series of educational workshops to keep you informed, and we'll let you know as each approaches.

2 - The price of gasoline seems to be on everyone's mind these days. Read the article below for a good analysis of how those prices got to where they are -- and where they might be headed.

3 - While it's hard to celebrate death, it's even harder to feel anything other than relief at last night's news that Osama bin Laden has been killed by a team of Navy SEALS. For the last ten years, amid near-toxic political rancor, our leaders have remained united on this one goal. During the administrations of two presidents and the changing face of Congress, work has gone on behind the scenes to track down the worst global mass murderer of our generation. It's ugly, it's violent, it's something we don't like to think about -- but the job has been done, and most of us are happy about it. Clearly, the war against terrorism is far from over, but today is a good day to be an American.

Have a blessed week -- and don't forget Mother's Day!

-Andy