Happy New Year!

I wanted to reach out and thank all of you for another tremendously successful year.  Thanks to an abundance of caution over the past five years our overall portfolio is still seeing only a 5% default rate.  Given the rising interest rate environment that is about as good as anyone could hope for in this industry.

Each of you has your own investment philosophy and know what has worked for you historically so I will only speak for myself personally.  Seeing as the stock market is showing tremendous volatility, higher-end real estate has slowed and the Fed is yet to pull back on their interest rate hike plans, I will be exercising even greater caution and allocating a larger percentage of my portfolio to cash in 2019, much the same as I did in 2018.

I still strongly feel that First Trust Deed investing is the greatest risk/reward investment vehicle I've even seen but we remain at the mercy of numerous macroeconomic factors which cannot be ignored.  I wouldn't say a recession is necessarily imminent but there are plenty of signs to make is seem as if the ground is shaking.  All that being said I think we're equipped to handle the next downturn as well as pretty much anyone.

At the end of the day our financial well-being is secondary to our physical health and family-life so I wish each of you and your families a successful, healthy and personally enriching 2019.