As we look back on the past twelve months, we’re pleased to report another strong year of performance for our firm’s clients. A strengthening economy has helped the bull market continue, with the S&P 500 Index posting its fifth double-digit gain in six years. Hardesty Capital Management also experienced a very positive year, as our AUM (assets under management) reached a level just shy of $1 billion, a company record. We are so appreciative of our wonderful clients and their support of our firm’s continued growth.

As we enter our 20th year in business, we’re as optimistic and excited as ever about the outlook for both our firm and its clients. While our optimism for the markets may be a bit more muted, we’re still looking for solid gains in 2015 for equities. As you’ll read in our investment analyses throughout Hardesty Horizons, we believe that the strengthening US economy will help drive earnings by 6-8% this year, resulting in at least a 7% increase in the DJIA to above 19,000 by year-end. While this forecast is slightly below the historical average for US stocks, market gains this year would lead to a continuation of one of the longest bull markets in memory.

This quarter’s Hardesty Horizons also analyzes one of our favorite stock ideas for 2015: Harley-Davidson, Inc. (Ticker: HOG). Please read our discussion on page 5 explaining why we feel that Harley shares will help “rev up” our clients’ portfolios. On page 6, we address the importance of not only proper asset allocation but also the potential impact that active management may have on your portfolio. And for our readers who are business owners with 401(k) plans for their employees, please read our article on page 7. We discuss the importance of hiring an advisor who will ensure your plan follows proper guidelines set forth by ERISA and the Department of Labor.

As we start off the new year, we are still settling into our new Baltimore County home. After almost 20 years in historic Mt. Vernon, we moved in early September to 303 International Circle in Hunt Valley, Maryland. Our new space is larger, more updated and offers room for expansion as our firm adds to its investment and support staff. The office is easily reachable from major highways, and parking for the building is excellent. Please come visit – we would love to give you a tour.

We wish all of our clients and friends of the firm a very Happy New Year, and thank you again for your continued support!