QUARTERLY LETTER: JANUARY 2014
Like somethin' is brewin' and 'bout to begin.
Can't put me finger on what lies in store,
But I fear what's to happen all happened before."
– Bert from Mary Poppins
Far from being the atrocious market that many feared – given the specter of a government shutdown, budget sequestration, Federal Reserve tapering, a credit bubble in China and economic problems in Europe – stock prices soared to new highs during 2013. For the year, the S&P 500 flew up by 32.39% and the MSCI World Index was in glad company with an advance of 27.36%. In the fourth quarter alone, the S&P 500 and MSCI World Index rose by 10.51% and 8.00%, respectively.