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 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 you interest in Forest Capital and Sixty Guilders Research.