In Perspectives

Now that the holidays are behind us, we find ourselves entering a new season:  it’s the time of year for annual market and economic forecasts.  Economists, financial analysts, and investment managers alike use the turn of the year to take stock of where we’ve been and make our best guesses as to what may be in store for us in the future.

As I look back at 2014 from the vantage point we have now, it is striking to me that many predictions that were made at this time last year by more or less a consensus of market participants did not come to pass.  Take the U.S. large cap stock market, for example.  After five years of a bull market and nearly three years of uninterrupted gains by the Dow and the S&P 500, many observers (including Legacy Trust) entered 2014 predicting the asset class was due for heightened volatility and a modest correction.  Needless to say, this did not come to pass – the S&P 500 again posted double-digit gains for the year, proving many of the experts wrong.

This is just one example, but it serves to illustrate a broader point:  while markets are ultimately driven by economic growth, and broad trends and cycles can be forecasted over longer periods of time, in the short run markets can move very quickly and be driven by any number of factors, many of which may have nothing to do with economic conditions.

Of course, none of this is to say that there isn’t great value in careful study of the economic trends and conditions that are likely to affect our investments in both the near and long term.  I think a key takeaway, though, is that the way that the story will play out in the market is very difficult to predict in the short run.  That’s why a well-diversified asset allocation strategy that does not rely on market timing is key to a long-term investor’s success.

The hallmark of a diversified portfolio is that at any given time, some asset classes will be in favor and some will be out.  Well-crafted economic and market forecasts play a key role in identifying opportunities and risks that skilled investment managers can tactically utilize, but the foundation of a high-quality diversified portfolio remains crucial to long-term success.

Legacy Trust and Your Right to Financial Privacy

At Legacy Trust we have established policies and practices that respect the financial privacy of all individuals who use our trust company. We believe it is critical to comply with the laws and regulations designed to secure your financial privacy. Your relationship with us as our client is very important to us, and we want you to understand our policies and practices about handling your information.

This Policy applies to you – This Policy applies to our relationships with individual clients who inquire about or obtain products or services from us for personal, family and household purposes.

Strict security measures – We take the security of information very seriously. We have established security standards and procedures to prevent access to client information. We maintain physical, electronic and procedural safeguards to guard client information.

Limited employee access – We have established procedures to limit employee access to information to only those employees with a business reason for accessing such information. We educate our employees about the importance of confidentiality and client privacy. We take appropriate disciplinary measures to enforce employee responsibilities regarding client information.

Why we collect information – We collect information about you to:

  • accurately identify you;
  • protect and administer your records, accounts and funds;
  • help us design or improve our products and services;
  • understand your financial needs;
  • save you time when you apply for new products and services; offer you quality products and services; and comply with certain laws and regulations;

We collect information – We collect and maintain your personal information so that we can provide investment management and other services to you. The types and categories of information that we collect and maintain about you include:

  • Information we receive from you to open an account or provide investment advice or other services to you (such as your home address, social security number, telephone, financial information and investment objectives).
  • Information that we generate to service your account or from our transactions with you (such as account statements and other financial information).
  • Information on your transactions with nonaffiliated third parties.

We have established procedures so that the financial information we collect is accurate, current and complete. We are committed to work with you to promptly correct any inaccurate information.

Our selective sharing of information – In order for us to provide investment management and other services to you, we do disclose your personal information in very limited instances, which include:

  • Disclosures to nonaffiliated companies as permitted by law, including those who help us service your account (such as providing account information to brokers and custodians).
  • Other limited disclosures as permitted by law, for example, required reports to government entities.

We do not share your information with third parties for marketing purposes. We do not sell your information.

Former clients – If you end your relationship with us, we will continue to adhere to the privacy policies and practices described in this notice.


Important Information About Procedures For Opening A New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

We apologize for any inconvenience this may cause; however, federal law prohibits us from waiving these requirements.

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