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Home This site created and maintained by Wes Stephenson Photos by Ray Matthews 
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MarketWise newsletter for September 27, 2002 Hello to everyone, Hope you're having a good fall--what a great time of year! I'm a football dad for the next six weeks or so--that means I'll be on a field in Manteo (with a big grin on my face, in all likelihood) weekday afternoons between 5:00 and 6:30PM. Accordingly, the office will be buzzing by 7AM (and probably earlier), so don't feel bad about calling or stopping by bright and early. My office is off of Eighth Street, between the highways on the Nags Head/Kill Devil Hills line. Swing by and say hi when you're on this part of the beach! Also, continued sincere thanks for the feedback and thoughtful comments on Dare Capital Management and Advisory. I think we're on to something good, here--this idea of independent, impartial, professional money management and financial advice. I would really appreciate your support and referrals. In this issue: 1. One-owner 401 K update 1. One-owner 401 K update- I have had a couple of nice conversations with Matt and Brian at Benefit Systems, Inc., down in Austin, TX. The Benefit Systems BSI One(k) product looks like a home run for self-employed folks or one-owner corporations, as it can, depending upon your situation, allow a higher contribution than SEPs or SIMPLES. The plan is built to allow the rollover of other retirement plans and is appropriate for income levels of $0-$200K. Setup is painless, charges are reasonable, I'll do the paper shuffling, and the savings can quickly run into the thousands. I have .pdf and hard copy brochures and would be happy to send you one, or call me and we'll chat about the program for a minute. 2. Cheap Money!- We are in unprecedented times as far as the low cost of capital goes! It's a very good time to consider taking advantage of the low rates to restructure your balance sheet. At a prime rate around 4.38%, it's probably worth it. Plus, there's no better investment than one in improving yourself and your situation. If you're too busy, though, don't want to deal with it, or need an impartial second opinion on the matter, give me a call! We'll have you squared away in no time, and I would venture to say that we can probably save you some REAL money, too. 3. Model Portfolio update- Last month I discussed initiating three model portfolios: Dividend Value, 21st Century Growth, and Fixed Income. A note about these is in order: The portfolios are simply a way to track a basket of stocks (or funds, in the case of Fixed Income) that represent different investment ideas of mine. The portfolios are not specific investment securities on their own. I hope that tracking the portfolios on an ongoing basis will show us how certain investment themes are being received in the market. The S and P 500 closed at 917.87 on August 28, 2002, the first day that all three portfolios were in existence. As of this writing (9/26)the S and P is at 847.82, for a loss of 7.69% over the period. Fixed Income was up 0.97% for the month, 21st Century Growth was down 3.16% for the month after factoring in dividends, and Dividend Value was down 7.42% for the month after factoring in dividends received. Dividend value is down more because part of the Growth portfolio was built at lower levels on July 1, plus a couple of its holdings have just been punished the last month. As of September 26, the largest 5 "positions" in the equity portfolios were as follows: 21st Century Growth--Sysco Foods (SYY), Johnson and Johnson (JNJ), Proctor and Gamble (PG), Southern Company (SO), and Northwest Natural Gas (NWN) Dividend Value--WD-40 Corp. (WDFC), Sysco Foods (SYY), Northwest Natural Gas (NWN), Bristol Meyers-Squibb (BMY), and Southern Company (SO) 4. Market Commentary-A tough month for the market--one that approaches the complexity and myriad of factors that we haven't seen since 1974's market bottom. At this point it's hard to say that the bottom reached two days ago is really THE bottom. That doesn't mean that we can't find a bit of return in the meantime, though. Short-term bond funds and low PE, dividend paying stocks may be good options for tax-deferred accounts. As for taxable accounts, there's a lot to be said for municipal bond funds--at least for the short-term--as they are a very safe investment and pay interest may be free from both federal and state taxation. Call for more info. 5. Charts This is a chart of the S and P 500, which closed at 854.95 on 9/26/02
This is a chart of the DowJones Industrials, which closed at 7997 on 9/26/02
This is a chart of Washington Mutual, which closed at $32.14 on 9/26/02
6. In Passing-- --Why doesn't the Outer Banks start using Tourist Bureau money from the transfer tax to buy vacant land? Seems to me that when all the open spaces are gone, they're gone for good. The Tourist Bureau WILL have a job to do then!! Good Investing, Will W. Woodard, III, CFP® Will Woodard is president of Dare Capital Management and Advisory, an independent Registered Investment Advisor and fee-only financial planning firm based in Kill Devil Hills. Will's firm specializes in professional, highly personalized investment management and planning services. Will can be reached at will@darecapital.com or (252)480-9535. "Clients and Friends Newsletter" is published monthly by Dare Capital Management and is free of charge. To subscribe, send your email address to will@darecapital.com and put "subscribe newsletter" in the subject line. All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Will W. Woodard, III and Dare Capital Management and Advisory, and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Dare Capital Management and Advisory is registered in the State of North Carolina as a Registered Investment Advisor Firm. The information presented herein and the company's web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Dare Capital Management and Advisory may, in some instances, include securities mentioned herein and/or on the company's web site. Positions in securities mentioned will be disclosed at the time of publication and may be subject to change at any time without further notice. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future results may vary for many reasons. |
