2nd Quarter 2015 Market/Economic Update

We talk to our guys all the time about the difference between interest and
commitment. When youre interested in something, you do it when it is convenient.
When youre committed to something, you do it all the time. -Shaka Smart

As we make the transition from spring to summer and while another quarter passes,
lets take this time to reflect on our accomplishments as a whole this
quarter. We
added five personal clients to our group and plan to add 8 more companies in
Quarter 3, for a grand total of 18 companies apart of Hutchinson Inc. This company
manages a combined over $7,000,000,000 billion dollars, with revenue over
$1,000,000,000 and even lose to the $2,000,000,000 mark. Im very proud of
everyones cooperation during this quarter and I hope everyone is happy with their
earnings. Everyones withdraw plan looks well and I hope this benefits everyone
very well financially. The words above about the difference between commitment
and interest is one of my favorite Shaka Smart quotes. As I was meeting with a
client earlier this year, she expressed an interest in getting out of debt and
developing a budget. I immediately asked her if she was committed to it or just
merely interested in it. Confused by my question, she asked what I meant. When I
explained the difference between commitment and interest, her reply was that she
had never considered a commitment to becoming financially fit. After deliberating
for a few days, she called to say that she was committed to getting her financial life
in order. So, I have helped her develop a budget and a plan to pay off debt, with the
goal of being debt free (other than her mortgage) by the end of 2016. For a person
in her mid-40s, that is a great goal. I can see some of you wondering what the point
of this is as you read the story. Well, the point is this: without commitment, we are
less likely to be successful in any endeavor we have in life. That includes our
financial life. Committing ourselves to living within our means, saving for retirement
and college, and using debt sparingly and prudently are sure-fire ways to be
financially successful. Each of us will define that success differently, but that is why
I try to get to know you and your finances as intimately as possible. Rest assured
that Hutchinson Inc., is committed to your financial success over the long-term.
Long-term is an interesting phrase. For some it means decades, for others it means
next month. When it comes to investing, in my opinion, one of the greatest

injustices to investors is the medias focus on the dayto-day trading of financial

markets. The thought in the press always seems to be that you must buy or sell
something every day. The reality is that time and compounding are wonderful things
and an investors best friend. In the short-term of one quarter or one year, one can
see a great deal of daily gyrations in asset prices, but no real movement. Look no
further than the 1st quarter of 2015 to illustrate that point. For the quarter,
depending on the index used, U.S. stock markets were either slightly down, flat or
slightly up. Interestingly, from the close on November 26 of last year, through the
close of today (April 17), the S&P 500 has gained a whopping 8.65 points or
0.42%. So, in almost 5 full months the market has been flat. In that same time
frame, the S&P 500 has traded between a low of 1972 and a high of 2119, which is
a range of 7.5%, yet the gain is less than half a percent. (Note: in the same time
frame the Dow closed at 17,827 on November 26, 2014, and closed at 17,826
today). The point I want to make is this: try not to worry about the day-to-day or
even the quarter-to-quarter. Often times asset prices (stocks, bonds, gold, oil,
homes) change from one day to the next even though nothing significant has
happened with the economy. Have you ever wondered why a stock can rise or fall
by one percent or more in a given day when literally nothing about the company or
the global economy has changed in the preceding 24 hours? The financial media,
driven by the need to fill 24 hours of news, cooks up reasons, but the reality is that
sometimes a stock falls because there was one more seller than buyer on a given
day. Thats certainly not exciting to report, but its the truth. Sometimes prices for
assets change without a meaningful reason for doing so. As much as I dislike shortterm reporting, this is common practice for our industry. As such, I am pleased to
report that our mutual fund, variable annuity sub-account and exchange-traded
fund (ETF) programs have all outperformed their respective benchmarks this
quarter. Our individual stock programs have either matched or exceeded their
benchmarks. Please keep in mind that as risk managers, if we can match or beat a
benchmark with less risk, then we have achieved one of our main goals. Of course,
our goals are much longerterm than just one or two quarters. [For more specific
information on our investment models and how assets are allocated within the
model, please contact me at your convenience.]The markets are on an upward
climb, yes there are going to be some bad days but overall we have seen the
market on a trend. I hope everyone is pleased with the switch over to Champlain
Banking, they had reached out to me and I want nothing but low fees and easier
access for my clients and their money. If you have any questions, concerns or
anything about your money, portfolio, fees, banking, financial purchases call me
anytime, I am always available for my clients.
I want to thank you so much for the incredible amount of referrals we received in
2014 and so far in 2015. It seems as if we had a parade of prospective clients every
month from your referrals and that has led to wonderful growth in this company we
call Hutchinson Inc. As quarter 3 comes around dont expect any major changes,
except a possible fee change. Lets plan to break four billion dollars in revenue this
next quarter and 8 billion for the year, we can do it. Lets plan to be one of the most
successful investment firms in the world. I am truly humbled by your generosity.
Lastly, on behalf of everyone at Hutchinson Inc., let me simply say thank you for

your continued trust, confidence and loyalty. Please know that I take the
responsibility as your wealth manager and investment advisor very seriously, and I
look forward to continuing in that role for a long time.
Best regards,
Hutchinson Inc.
Joshua A. Hutchinson
President