1st Quarter 2013
March 31. 2013

The first quarter has been active on many fronts. The stock markets dismissed any worry regarding the government sequester and a sluggish economy to finish up nearly 10%. We saw the fourth quarter GDP come in slightly higher on economic activity with housing leading the way and manufacturing showing signs of improvement. The job market is still grinding upward but overall, corporate earnings are starting to show signs of fatigue which will eventually lead to either a correction or a sideways move in the markets. In either case, we are prepared and ready to take advantage of it.

In our client portfolios, we have been using this recent upward move in the markets as an opportunity to reduce risk by selling some equity positions. The most recent of which, was long time core position Dodge and Cox International. For many of our clients it has been a staple in their portfolio going back to 2002. It has served us well but over time we have found our philosophy and communication with the fund less than desirable. We are replacing it with Oakmark International which is in a fund family we have experience with in the past (using the Oakmark Fund). Watch Waterway Wealth Management’s blog for more details regarding the change.

In our office, we have also been busy adding two new employees to our team during the quarter. The first is Amelia Weber. Amelia comes to us after 12 years at the Houston Police Officer’s Pension System and was previously on our team back in Tomball prior to 2002. She has a familiarity with our processes and focus on client service that has allowed her to step in immediately and fill the role of scheduling meetings as well as handling Fidelity details such as distributions, transfers and contributions. The second hire this quarter is Adam Durke. Adam comes to us with a Finance degree and 5 years of experience in the financial industry, most recently with Chase. He will be working closely with Robert on the planning team and will be involved in all spring meetings. We hope you will welcome them both to the Waterway team.

Lastly, we have our open house coming up on April 11th from 3pm to 7pm. It is an opportunity to see the new office space, meet the entire team and celebrate with us. If you can’t make it we look forward to seeing you during your spring meeting.

Dan Michalk CFP®,ChFC