Marking Time – A Grateful 15 Years
By Julien B. Booth
March 28, 2019
Good Afternoon:
As we close the first quarter of 2019 I would like to give you my most sincere appreciation for your interest and trust in Forest Capital.
We are marking 15 years in operation this quarter and I am truly humbled at 1. survival (the first 5 years), and 2. flourishing (trailing 5 years).
Thank you. I greatly appreciate you. I promise to always respect your Capital.
During Q1 we have seen an EPIC move downward in interest rates (bond prices upward) – Shockingly (not), Wall Street banks-brokerages missed it again. 3.25% to 2.39% on a 10 year USTreasury.
Accordingly, interest rate sensitive sectors we favor are at all-time highs: Real estate, utilities, preferred stock, and traditional bonds are having a wonderful performance.
After the anxiety of the opposite interest rate move in 2018, this period sure is more fun.
Additionally, as real interest rates decline (after inflation) precious metal appreciate – hence our allocation to operating cos. Goldmoney & Mene.com.
On a risk-adjusted basis this quarter has been the best FC performance I can remember.
We will continue to focus our diligence on RISK control and predictability of return.
Note: lower rates generally portend economic slowing.
Thank you for your interest in Forest Capital and Sixty Guilders Research.
JBB