St. Petersburg, Florida | 727-914-7467 | DCHWealthManagement.com
2023 Midyear Client Letter
Dear Friends,
I'm even more delighted than usual to report to you at midyear on the events of the last six months, and on the further progress of our long-term plan. But first, as always, a brief recitation of our principles.

The Ideas That Guide Us

  • You and I are long-term, goal-focused, planning-driven owners of broadly diversified portfolios of enduringly successful companies. As such, we act continuously on our plan, as opposed to reacting episodically to current events and conditions.

  • We're convinced that the economy cannot be consistently forecast, nor the market consistently timed. We infer from this that our best chance to capture something close to the full long-term return of equities is to ride out their frequent, sometimes significant, but historically always temporary declines.

  • These will continue to be the bedrock convictions that inform our investment policy, as we pursue your most cherished financial goals together.


Current Commentary

  • After declining sharply for most of 2022, the S&P 500 ended the year at 3,840.

  • As the year turned, it seemed as if the economy might well be in a no-win situation. Either the Federal Reserve would tighten credit conditions enough to stamp out inflation, thereby plunging us into recession. Or it would relent, avoiding recession but permitting inflation to burn on. In either case, we were assured that corporate earnings must be about to decline significantly, boding ill for “the stock market.”

  • Then the first half of 2023 added three new and potentially critical uncertainties: the specter of U.S. sovereign default, a wave of bank failures that seemed to threaten the banking system itself, and a renewed outbreak of fear surrounding the dollar's status as the world's reserve currency.

  • Yet after enduring that relentless onslaught of crises real and imagined, the S&P 500 closed out the first half of 2023 at 4,450, up a little over 15%. I'm almost tempted to say, “You read that right,” and leave you to draw your own conclusions. Instead, I'll just repeat Peter Lynch's timeless maxim: “The real key to making money in stocks is not to get scared out of them.”

  • In that sense, these six months represent for me—and I hope for you—a successful investing career in microcosm. You and I did all that can be asked of us: amid almost universal pessimism, we didn't get scared out.

  • Rather, we stayed focused on our goals and on our long-term plan, with confidence that the managements of the companies we own were husbanding our capital with diligence, while they sought out new and potentially greater opportunities amid the adversity.

In summary, everything that happened (and didn't happen) in the first half of 2023 turned out not to matter much. What mattered was that together we chose not to react. Is it possible that a lifetime of patient, disciplined investment success is just that simple? I certainly believe it can be, and I sincerely hope you do too.

Thank you, as always, for being my clients. It is a privilege to serve you.

Best Wishes and Regards,

David Henderson


P.S. We are never too busy to help your family and friends. If you know of someone who may not be getting the financial advice they deserve or who just wants an objective second opinion from someone they can trust, please feel free to pass on our information. It stands to reason that if we enjoy working with you, we'll enjoy working with them too!

This is being provided for informational purposes only, and should not be construed as a recommendation to buy or sell any specific securities. Past performance is no guarantee of future results, and all investing involves risk. Index returns shown are not reflective of actual performance nor reflect fees and expenses applicable to investing. One cannot invest directly in an index. DCH Wealth Management, nor any of its members are tax accountants or legal attorneys, and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional. The views expressed are those of DCH Wealth Management and do not necessarily reflect the views of Mutual Advisors, LLC or any of its affiliates. Investment advisory services offered through Mutual Advisors, LLC DBA DCH Wealth Management, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies.

We are never too busy to help your family and friends! 
 
If you know someone who may be able to benefit from our advice, please introduce us! One or two things will happen: We will get the satisfaction of meaningfully helping someone you care about, or it might just be the start of a wonderful new relationship. It's our goal to help you and everyone you know make smarter financial decisions. 
 
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Investment advisory services offered through Mutual Advisors, LLC DBA DCH Wealth Management, a SEC registered investment advisor. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities Inc, and Mutual Advisors, LLC are affiliated companies.