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January 1, 2020

Dear Client: Returns for the major stock indices for 2019, and the current bond and money market yields are as follows: IndexYear-End 2019Dow Jones Industrial Average    25.34%S&P 500    31.49% Fixed Income Yields1 year5 year10 year30 yearMunicipals1.06%1.14%1.48%2.15%US Treasuries1.57%1.69%1.92%2.39% Fidelity Government Cash Reserves Money Market Fund 1.32% Happy New Year!  As we begin the new decade, please again recognize how your commitment to long-term investment principles has rewarded you this year.  2019 was the best year to be an equity investor since 2013.  Not only was the year strong in market performance, there was minimal volatility as 10 of the 12 months posted positive results and each sector in the S&P 500 increased for the year.  We had three market declines over five percent but did not record a single decline of ten percent in any of the major market indexes.  Also, the decade ending in 2019 proved to be a rewarding one for investors, averaging an annualized 13% rate of return, though only the 4th best decade since 1930 trailing the 1950s, 1980s, and 1990s.   No matter how you slice it, this past year and decade again proved to be excellent periods for long-term investors. As we reflect on a great year and decade in the markets, we still remember the negative year in 2018 and the relatively quick 20% decline in the 4th quarter of 2018.  We wrote one year ago, at the low of the markets, how we remained optimistic for the year ahead.  Though we know short-term market calls are difficult, we know we have to continue to make risk decisions based on rational, thoughtful, and principled processes....