I am privileged with the opportunity to be on the air representing Goelzer Investment Management this Friday, April 20th with Lloyd Wright, WFYI President and CEO. Goelzer Investment Management is issuing a $1,500 challenge grant to encourage listeners to support WFYI Public Media during Morning Edition between the hours of 7 a.m. and 9:00 a.m.

As a corporate underwriter of WFYI for the past 12 years, we stand behind WFYI’s quality programming and their focus on Health, Education, the Arts and Public Affairs. I am encouraging you to call or go online and become a member of WFYI with your gift or individual support during my air shift. If you are unable to make a contribution during those hours, please do so sometime during the membership campaign.

It’s fast.  It’s easy.  Support WFYI FM 90.1 Public Radio in Central Indiana by calling 800-233-0020 or visiting www.WFYI.org.  Make sure you note in the comment section online, or tell the volunteer who answers the phone, that you’re contributing because I sent you this email.

Thank you in advance for your support!

Brett D. McKamey

President

“…economic conditions – including low rates of resource utilization and a subdued outlook for inflation over the medium run – are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

        Federal Reserve Open Market Committee -January 25, 2012

Transparency has become the Federal Reserve Board’s mantra under Chairman Ben Bernanke.  The Board’s once opaque monetary policy setting arm, known as the Open Market Committee (OMC), now spells out its policies with precise detail.  While we prefer this new transparency over the ambiguity of the past, it is their message that we now find to be challenging.

READ FULL COMMENTARY HERE

In addition to Brian, Evgueni Alexeev has joined our team as an Associate, assisting our portfolio managers in the analysis of investment opportunities.  Evgueni holds a Bachelor of Science degree from Indiana University’s Kelley School of Business, graduating in 2011 with majors in Finance and International Business and a minor in Economics.

For more information, please visit www.goelzerinc.com to review the press releases and individual biographies for both Brian and Evgueni.

The additions of Brian and Evgueni bring the total number of professionals at Goelzer to 21, with a firm average of 27 years of industry experience.  Our investment professionals are focused on Goelzer’s disciplined approach to investing and helping each client navigate successfully through the economic and market ups and downs year in and year out.  We truly believe our team is one of the most talented in the business.

Should you have any questions or comments, please do not hesitate to give Sherri Grabhorn or me a call.  You can reach Sherri directly at (317) 264-2618, (e-mail: sgrabhorn@goelzerinc.com) or, if outside the Indianapolis calling area, (800) 428-1618.

Sincerely,

GOELZER INVESTMENT MANAGEMENT, INC.

Brett D. McKamey, CFA
President

“The determining trait of the enterprising investor is his willingness to devote time and care to the selection of securities that are both sound and more attractive than the average. Over many decades, an enterprising investor of this sort could expect a worthwhile reward for his extra skill and effort in the form of a better average return than that realized by the passive investor.”   

                         Benjamin Graham – “The Intelligent Investor,” 1949

Benjamin Graham is considered the first proponent of value investing, an investment approach he began teaching at Columbia Business School in 1928. Graham’s followers include Warren Buffett.  One of Graham’s favorite metaphors is that of Mr. Market, someone who turns up daily at the stockholder’s door offering to buy or sell shares at a different price each day.  The price quoted by Mr. Market rarely seems credible. The investor is free to either agree with his price and trade with him, or to ignore him completely.  Regardless of the stockholder’s decision Mr. Market will return the next day to quote another price. The point of Graham’s story is that the investor should not regard Mr. Market’s quotes – unpredictable as they are – as the true value of the shares that the investor may wish to buy or sell. He should try to profit from market madness rather than participate in it.  The investor is best off focusing on and making decisions based on the actual performance of companies, rather than being overly concerned with Mr. Market’s often irrational behavior.

READ FULL COMMENTARY HERE

Prior to joining Goelzer, Brian worked for JP Morgan Chase.  During his 20-year tenure there, he served as Executive Director within the Private Banking group, managing and advising on assets valued at over $800 million.  He specialized in working with high-net-worth families to design and implement comprehensive investment strategies and sophisticated financial plans.  Brian began his career in Chicago, working in Chase’s Capital Markets Finance and Foreign Exchange groups.

Brian holds a Bachelor of Science degree in Finance from Miami University in Oxford, Ohio and an MBA in Finance with honors from DePaul University in Chicago.  He holds the Series 7 (General Securities Representative) and Series 66 (Registered Agent and Investment Advisor) industry licenses.  A Chartered Financial Analyst (“CFA”), Brian’s professional memberships include the CFA Institute and the CFA Society of Indianapolis.

Born in Cleveland, Ohio, Brian lives with his wife Kristy and their three children in Zionsville, Indiana.

Evegueni holds a Bachelor of Science degree from Indiana University’s Kelly School of Business, graduating in 2011 with majors in Finance and International Business and a minor in Economics. During his studies, he was active in the Undergraduate Investment Club and the Investment Banking Club. He also served as a peer tutor and worked as a Site Leader within the school’s Alternative Spring Break program. Prior to graduating, he interned with Priority Capital Management of New York City where he analyzed potential high yield and distressed fixed income investments and presented his analyses to senior management.

Alexeev holds the Series 7 (General Securities Representative) and Series 66 (Registered Agent and Investment Advisor) industry licenses.

Evgueni resides in Indianapolis, Indiana. He enjoys reading, tennis and foreign languages. He is fluent in English, Russian, Ukrainian and is conversant in French.

Dear Clients and Friends:

This past week you should have received from Pershing a 1099-Tax Information Statement for your taxable investment account(s).  We wish to remind you that, as in past years, it is possible that you will receive a revised 1099 in the coming weeks.  The cause of this dates back to the 2003 tax law changes regarding “qualified” dividends.  That law, in some cases, makes it impossible for custodians to determine by the February 15^th 1099 reporting due date whether or not dividends are “qualified” for tax purposes.  For this reason, we recommend that you delay the filing of your 2011 federal and state income tax returns until late March or early April to avoid the need to file an amended return due to a revised 1099.

Additionally, please be aware that your 1099-Tax Information Statement from Pershing will include your 2011 realized gains and losses.  Therefore, you will not receive a separate gains and losses report from Goelzer.

If you employ a tax advisor, you will need to forward the information provided by Pershing to your advisor in order to prepare your income tax return.

As always, if you have questions in this matter or if we can assist in any way, please do not hesitate to call us.

Regards,

GOELZER INVESTMENT MANAGEMENT, INC.

Separately, please know that you may obtain a copy of Part II of Goelzer Investment Management’s Form ADV, filed with the Securities and Exchange Commission under the Investment Advisers Act of 1940, at no charge upon written request to our office.

We at Goelzer remain as committed as ever to adding value to our relationship with you through everything we do on your behalf. As a result of our continued growth and investment in efficiency enhancing technology, we are pleased to announce that we are once again able to pass along an adjustment to our brokerage expense schedule. Specifically, the cost of equity trades under 1,000 shares has been reduced by 13% effective January 1, 2012, subject to a $20.00 minimum.

Once again, we want to take this opportunity to thank you for the confidence and trust you have placed in us this past year, and the referrals many of you have passed along as a testament to this trust. It is referrals from clients like you and our friends in the professional community that have allowed us to continue to grow as an organization. We are excited about our future together and look forward to serving you and your family for generations to come.

Should you have any questions or comments about the enclosed report or require additional information, please do not hesitate to give Sherri or me a call. You can reach Sherri directly at (317) 264-2618, sgrabhorn@goelzerinc.com or, if outside the Indianapolis calling area, (800) 428-1618.

As always, we welcome and appreciate your thoughts regarding how we are doing and what we can do better. Valued clients and friends like you are the foundation of our success.

Sincerely,
GOELZER INVESTMENT MANAGEMENT, INC.

Brett D. McKamey, CFA
President

Each December many articles tout forecasts for the direction of stock and bond prices in the year ahead.  While we regularly give our ten-year outlook for the markets, as we have done below, we mostly avoid attempts to predict returns over shorter periods such as a calendar year.  The reason for this is simple: it is an endeavor at which no one has shown consistent success.

READ FULL COMMENTARY HERE

Be fearful when others are greedy and greedy only when others are fearful. -Warren Buffett

Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.  – Warren Buffett

The future is never clear, and you pay a very high price in the stock market for a cheery consensus.  Uncertainty is the friend of the buyer of long-term values. – Warren Buffett

These quotes from Warren Buffett reflect the well regarded wisdom about how and when to buy stocks.  It’s simple, right?  Everyone knows the object is to buy stocks when they are low and to sell them when they are high.  But surprisingly, very few investors actually accomplish this.  Most people get caught up in the enthusiasm of a rising market or more recently, the pessimism of a falling market.  More often than not, most investors let the attitude of the day drive their long-term investing decisions and eschew these time tested disciplines of investing.

READ FULL COMMENTARY HERE