Final Week of 2011 & Happy New Year!

1 - Reminder: Millard & Company will be closed today (Monday, December 26) and this Friday, December 30. We will be open all next week; our main focus will be producing year-end client reports.

2 - Investor jitters seem to be settling down just a bit. While there's still plenty of uncertainty ahead, including a bruising presidential campaign, it's good to see a brief spell of relative calm in the markets -- even if it turns out to be very brief indeed.

3 - New Year's Day has become my favorite holiday. New Year's is about reflection, renewal, and optimism -- each of which is in woefully short supply in the frenetic 21st Century. What's more, because it follows hard on the heels of the massive hype of Christmas, New Year's is largely untainted by the over-commercialization that detracts from so many of our other important holidays.

We can't know what craziness the world will throw at us next year. But we can control our attitude -- and thereby prevent the craziness from taking control of our lives.

Have a wonderful final week of 2011; here's to a stellar 2012!

-Andy


Juliet at the White House

In late September, Juliet attended the TD Ameritrade Operations Conference in Washington, DC. While there, she had the opportunity to spend some quality time with Bonnie Armstrong, our special projects colleague who lives in the DC area. The afternoon before the sessions began, they did some sightseeing, and Bonnie snapped this photo of Juliet in front of the White House.



Holiday Message from Andy

1 - Despite all the drama in the stock market this year, it really has moved very little. Since the first of this year, the Dow Jones Industrial Average is ahead by 2.5% while the broader S&P 500 is down 3.68%. Many potential pitfalls remain, of course, so we're skewing most clients' portfolios toward the risk-averse end of the spectrum.

2 - Our office will be closed this Friday and next Monday for Christmas.

3 - From all of us at Millard & Company -- Juliet, Michele, Bonnie, Sharon, and me -- we wish you a holiday filled with peace, joy and love.

Have a blessed week and a Merry Christmas!

-Andy

Celebrating Holiday Season Together

1 - Financial markets spent last week in a bit of a holding pattern as investors awaited the outcome of the European Union summit in Brussels. While most leaders of the 27 EU members reached a tepid accord (Great Britain demurred), they really did not appear to accomplish the big splash that investors had been hoping for.

2 - Economists are now talking openly about (1) the likelihood that Europe is already in a new recession, and (2) the possibility that the eurozone -- the 17 EU members who all use the common currency -- could come apart. The Wall Street Journal reported last week that member nations are tuning up their printing presses -- just in case they need to start churning out currencies of their own.

3 - We're gearing up for the end of the year: making sure all clients with annual required minimum distributions (RMDs) have taken them by the end of this month, clearing up lingering cost basis issues, and making sure client portfolios are properly positioned to ring in 2012. It is a busy time, but you know us: we're having fun doing what we do.

Have a wonderful week -- and please do your Christmas shopping locally!

-Andy

In case you missed it, On December 1 we hosted a holiday event for clients and their guests. We enjoyed a sumptuous dinner by Pat Strother, delectable cheesecake bars by Juliet, and Frank Capra's timeless film It's a Wonderful Life. Michele did a great job planning and setting up. For the privacy of our clients, our videographer Erik Olsen took care not to show faces (other than us worker bees). Enjoy this one-minute video recap.

Replaying The Global Economy's Effects on Investors

1 - Talk about volatility. Despite the best week for U.S. stocks in almost three years, we are still slightly behind where we were just two weeks ago. This week promises to be just as rocky, as the leaders of the 27 nations constituting the European Union meet Friday to consider binding themselves into a closer political union. If they can do it, it could be an extremely promising signal to financial markets. If they can't, well....

2 - Last night, Bloomberg ran an excellent article outlining the important issues surrounding this week's meetings in Europe. If you have an interest in understanding the situation, I commend it to your attention. Click here to read it. In addition, last week's video commentary is just as applicable this week as it was then, so we're running it again below.

3 - Last Thursday evening, about 55 clients and guests set aside their worries and kicked off the holiday season in the Depot Room. We enjoyed hot cider, a fabulous Pat Strother-catered dinner, Juliet's homemade cheesecake bars, and and It's a Wonderful Life on the big screen. I was taken aback by the large number of attendees who said they had never seen the movie before; of course, they all loved it. Even for those of us who had seen it many times, its theme -- the notion that real wealth lies in doing good for others -- resounded once again. There's something about watching a classic film the way it was intended to be seen -- on the silver screen in a darkened room and surrounded by an appreciative audience -- that makes for a special experience. For those clients who have been unable to attend one of our "dinner and a movie" events, I hope you can make the next one.

Be thankful for our wonderful community. Have a terrific week -- and remember: do your Christmas shopping locally!

-Andy

We ran this video with last week's update, but it applies just as much this week as it did then. And since quite a few readers didn't watch it, we're running it again. It takes a very brief look at (1) the U.S. and European economic picture; (2) its potential implications for investors; and (3) what we're doing about it at Millard & Company.

The Global Economy's Effects on Investors

1 - The U.S. stock market has lost ground every day for the last seven sessions; according to Briefing.com, those seven days have drained 7.8% from the S&P 500. The latest causes for pessimism continue to come from  politicians on both sides of the Atlantic. The situation in this country won't be settled until next November's national elections -- and may not be settled even then. As ugly as it is here in the states, it is much more complicated in Europe, where the leaders of about a dozen countries -- countries with competing interests and grouchy electorates -- must somehow come together on a unified cure to a rapidly growing infection. Bottom line: we don't have a clue as to where all this is going. Hold on to your hat.

2 - To view a 3-minute video about the economic picture and how we're dealing with it at Millard & Company, click here.

3 - Remember that this coming Thursday (December 1) is our client holiday Dinner and a Movie event. As of this writing, we have received RSVPs from about 50 clients and guests, and we're looking forward to a fun and festive evening. If you haven't signed up yet, click here to do so.

I hope your Thanksgiving was a good one. Have a great week -- and do your Christmas shopping locally!

-Andy

Thanksgiving Message from Andy Millard

1 - Good news: it looks like the federal government will indeed be able to cut $1.2 trillion from the deficit over the next ten years. Bad news: the reduction almost certainly will not come as a result of the Congressional "supercommittee," but rather as a result of the so-called sequester, a process of automatic across-the-board cuts set to occur in the event of the committee's failure to reach an accord. Indeed, the group's twelve members haven't even gathered at the same table for many days, and members signaled last night that they had failed in their mission. What may be even worse is the very real possibility that Congress could rescind the sequester mechanism and its accompanying deficit reduction. What seems clear is that this problem will once again be kicked down the road, to be settled by next year's presidential and Congressional elections. In the meantime, don't expect the financial markets to be happy about the apparently permanent gridlock.


2 - The combination of deepening European woes and the fading hopes of our country's deficit-reduction committee sent global financial markets gyrating downward last week, and the news doesn't look any better this week. But although last week's losses might well be extended as a result, such an outcome is not a foregone conclusion. If there's one thing I've learned in 17 years of watching this stuff, it's that you usually shouldn't assume an automatic cause-and-effect.

3 - We are especially thankful this year at Millard & Company. We've had an outstanding year in our new home, and as the holidays approach, we count our many blessings. Thankfulness is even more potent when it is applied to the future. We recognize the daunting challenges that surround us in this world. But we choose to see an ever brightening road ahead -- for ourselves, our families, our friends and our clients -- and we will work to make that vision a reality. Some may call it wishful thinking; I call it faith.

Shortly before Thanksgiving last year, my Dad (the Great Bob Millard) and I were having one of our periodic computer lessons where I attempt (almost always in vain) to answer his questions -- questions such as: "Why is my email broken?" and "Where is the Internet?" The video below was my attempt to show him one of the wonders of his home computer: the ability to produce videos. It turned into a spontaneous expression of Thanksgiving for both of us. I sent it last year at this time, and the response was so enthusiastic that I thought I'd share it with you again. Happy Thanksgiving!

Have a wonderful Thanksgiving!

-Andy

How About a Roller Coaster Ride?

1 - The stock market finished last week strong -- the Dow Jones Industrial Average gained over two percent on Friday. But as has been the case for several months, the real story is daily, stomach-turning volatility based on continuing uncertainty in Europe. The recent habit of stocks to soar or plunge based on a single day's news, only to reverse direction following the next headline, is troubling to say the least. It's starkly obvious that investors know nothing beyond the present moment, so for a while at least, the present moment will dictate the movement of the markets. Clearly, caution continues to be the order of the day.

2 - The latest eurozone country to cause concern is Italy -- and this time we're talking about a major economy, the eighth-largest in the world. World markets reacted favorably to Prime Minister Silvio Berlusconi's resignation and replacement by economist Mario Monti, but that country's troubles are far from over. Read "Uncertainty Over Italy" below for a thumbnail description of the situation and its potential ramifications.

3 - Reservations for our upcoming Client Dinner and a Movie event are coming in fast. We already have about 35 RSVPs, and we're looking for more. You know that we're going to watch It's a Wonderful Life, but here's the twist: we're going to see the colorized version. Like many people, I generally enjoy seeing vintage movies in their original black and white, but I really think you'll enjoy the high-def colorized version. The colors are vivid and natural, and with a film as familiar as this one, the addition of color allows you to experience it in a whole new way. Come with an open mind, and prepare to be amazed. Click here to RSVP if you haven't already done so.

4 - Check out the video below; the topic is change, and it will leave your head spinning.

Have a glorious week!

-Andy