Q4 2013 Client Letter
2013 was another banner year for stocks with the S&P 500 Index rising 29.6%. Since March 9, 2009 the S&P 500 Index has risen 173% as investors have been greatly rewarded for taking risk. A few years back price-earnings market multiples of 11 and 12 times now seem like bargains with the S&P 500 Index’s forward PE now trading at 15.4 times as of December 31st. One by one investors have been jumping on the bandwagon causing stock prices to rise and valuations to increase. With U.S. markets trading at all time highs investors are more concerned than ever about whether to stay the course or “take the money and run.”