Continued Market Volatility
You have probably noticed that most of our communications this year have been centered around market volatility. We have been saying for a while that we expect more volatility going forward than we have seen in the recent past.
The most recent “reason” for volatility has been centered around Russia and Ukraine. Our hearts and prayers go out to the people of Ukraine as they undergo both an internal political crisis and what appears to be military intervention from Russia. We believe that Russia’s economy could be the big loser in the aftermath of the Ukrainian crisis. The threat of trade disruption between Western nations and Russia (due to either sanctions or reluctance to deal with a country that doesn’t seem to be focused on following international law) would cost the Russian economy billions in a matter of days.
The important thing that we want to communicate is that volatility is a normal and a needed part of investing, no matter the reason. More volatility is always expected when prices of stocks are no longer discounted in the market (which is where we view today’s prices.) We know that we will experience volatility from time to time and it is needed to prevent “bubbles” and to allow you to buy assets at discounted values. We will be closely watching for those opportunities. Bottom Line: While we do not know what the future holds, we do know that we will experience volatility. Volatility provides opportunities to buy assets at discounted values. We will be watching closely for those opportunities.
Bottom Line: While we do not know what the future holds, we do know that we will experience volatility. Volatility provides opportunities to buy assets at discounted values. We will be watching closely for those opportunities.
Cetera Advisor Networks, LLC acquisition by RCS Capital Corporation
We also wanted to give you advance notice of a letter you may receive in the near future, informing you of the acquisition of Cetera Financial Group, Inc. by RCS Capital Corporation (RCAP). This acquisition is expected to be completed by the end of the second quarter, subject to regulatory approvals.
We view the change of ownership as a non-event. This change of ownership will not change your relationship with us (Adams Financial), your investment accounts, or where your accounts are held. We want to assure you that you will continue to receive the same quality of service from all parties following the acquisition by RCAP.
Shortly, you will receive a letter from Cetera Advisor Networks LLC asking you to complete a brief consent form and return it by April 18, 2014 in the postage paid envelope provided. When you receive the consent form, we ask that you fill it out and return it. It is important to know that your consent does not change the terms of the agreement we both signed when you opened your advisory account.
Several weeks prior to the anticipated close of this transaction, if you did not return the consent form, Cetera Advisor Networks LLC will send you another letter. This second letter will explain that if they do not receive your consent by the time the transaction is completed, we will continue to service your account as provided in your current advisory agreement. If you have any questions or concerns about this change, or anything concerning your account(s), please feel free to contact us at 919-424-4650.
March 18th, 2014
Q2 Client Conference Call
Access Code: 918606951
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