Tuesday, October 14, 2014 Tuesda
LOCAL BUSINESS
THE NEW MEXICAN
A-7
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COMMENTARY: DAVID MARION
Return of stock market volatility is no surprise S
Gregory Waits, owner of Waits Studio Works, prepares an exhibit Friday at his studio off Siler Road. PHOTOS BY LUIS SÁNCHEZ SATURNO/THE NEW MEXICAN
Creative hub rises around Siler Road
Performance groups and art entrepreneurs enliven midtown industrial area
By Chris Quintana The New Mexican
IF YOU GO
otorists passing through the Siler Road area are more likely to see autorepair garages and metal and glass shops than creative businesses, but it’s a part of town that continues to attract artistic professionals. That was the case for Gregory Waits, who recently held a soft opening for his multiuse space, Waits Studio Works, 2855 Cooks Road, last month. Waits’ cavernous studio, tucked away among other warehouses about a block away from Siler Road, will pull triple duty as an office, gallery and event space. Waits said the location off Siler Road might seem an odd choice, but the neighborhood gives him the creative freedom he craves. He’s not alone. Art studios, dance and theater troupes, and other creative outlets have flocked to the Siler Road district, drawn to its abundant space and affordable prices, two factors that are largely lacking in downtown Santa Fe. It also helps that Siler Road, once considered the south side of town, now rests firmly in the center of the town’s north and south sides. “If Santa Fe continues to grow, I see this as a really happening district,” Waits said. Tai Bixby, a local Realtor familiar with central Santa Fe, said the Siler Road district is “up and coming,” but there is a demand for mixed-use spaces. That’s in contrast to much of the established industrial zoning in the area. “If the city is serious about economic development, it needs
What: Waits Studio Works grand opening. Waits Studio Works will showcase two projects: the Blue Jeans project and Site Blackdom. The Blue Jeans project focuses on repurposing old jeans, and Gregory Waits encourages potential attendees to bring their “funky” jeans for the project. Site Blackdom is a multimedia exploration of the migratory experience of African Americans. When: 6 p.m. Saturday, Oct. 18 Where: 2855 Cooks Road, Unit A
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Clark Road, located off Siler Road in central Santa Fe. Art studios, dance and theater troupes, and other creative outlets have flocked to the Siler Road district, drawn to its abundant space and affordable prices.
to allow for flexibility in zoning,” Bixby said. City Councilor Signe Lindell recently drafted a piece of legislation that allows for more varied uses of industrial spaces. The City Council passed that ordinance at a Oct. 8 meeting with little opposition. For Waits Studio Works, the business model is hard to pin down. Waits plans to use the warehouse to meet architectural clients — he graduated from The University of New Mexico with a master’s degree — but he also has grander plans. The walls are adorned with photos and paintings, and almost everything is for sale. He also wants to host artistic gatherings and social events. He already has hosted an event by MIX Santa Fe. Wise Fool New Mexico, a local
performance arts troupe, has called the Siler Road area home for a number of years. Carol Schrader, Wise Fool’s managing director, added that a number of dance companies and theater troupes, such as Teatro Paraguas, the Santa Fe Playhouse and Theaterwork, have added locations in the area. Schrader said the area has become a de facto center of the city, providing easy access to downtown and the growing south side. And she said the area’s industrial shops are compatible with creative businesses. The area also has benefited from the addition of Duel Brewing, 1228 Parkway Drive, located a few blocks southwest of Siler Road. The popular brewery, which founder and owner Trent Edwards opened in August 2013,
serves a part of town bereft of late-night options. It also hosts musical acts and a city-funded indie movie screening every other Sunday. Edwards, who said the brewery has seen an increase in sales of its bottled brews, has plans for an expansion come February. Edwards is happy with the location. He said his crowd is “99 percent local” and that his clientele live nearby or come to Duel Brewing to escape the Santa Fe Plaza scene. “We’re down here with the artists and workers and the people who keep this city moving,” he said. “Santa Fe never really had anything like this in an industrial district.” Contact Chris Quintana at 986-3093 or cquintana@sfnew mexican.com. Follow him on Twitter @CquintanaSF.
“ If Santa Fe continues to grow, I see this as a really happening district.” Gregory Waits, who recently opened Waits Studio Works in the Siler Road area
In brief Nine Business Woman of the Year nominees The Santa Fe Professional Business Women group has announced nominees for the 2014 Santa Fe Business Woman of the Year. The nominees are Lorin Abbey, director of sales and marketing, El Castillo LifeCare Community; Janet Arrowsmith, Arrowsmith Consulting LLC; Katharina Babcock, New Mexico Department of Public Safety Forensic Laboratory; Karen Bomm, best-selling author and founder of aBeansTalkSocial.com; Victoria Bruneni, general
manager, Inn at Santa Fe; Zia Cross, LegalShield independent associate and small business and group benefits specialist; Barbara Damron, director of the Office of Community Partnerships & Cancer Health Disparities, University of New Mexico Cancer Center; Kathy Mattison, contractor compliance coordinator, New Mexico Department of Transportation; and Jennifer Rios, general manager and owner, Restaurant Martín. Selection of the winner is based on an individual’s career achievements; efforts on behalf of issues such as pay equity and equal rights; assistance to others in the advancement of their own careers; guidance to youth and young careerists; and organization/ association affiliation. Santa Fe Professional Business
Main office: 983-3303 Late paper: 986-3010 News tips: 986-3035
Women will name the Business Woman of the Year at a banquet Oct. 24 at the Santa Fe Country Club. The public is invited; for reservations contact Angelina Hull at 919-8138.
Data Users Conference set for Nov. 14 The 16th annual New Mexico Data Users Conference is set for Thursday, Nov. 14, at the Central New Mexico Community College Workforce Training Center, 5600 Eagle Rock Ave. NE in Albuquerque. The annual event is presented by The University of New Mexico’s Bureau of Business and Economic Research. The all-day conference is New Mex-
ince the broad U.S. stock market (as measured by the S&P 500) closed at an all-time high Sept. 18, there has been a significant increase in volatility; and as of Monday, prices have dropped by 5 percent. Price swings in international stock markets have been even greater. This turmoil has caused concern among individual investors, many of whom only recently became comfortable investing in stocks again after two devastating bear markets in the past 15 years. Several of our clients have asked us what has caused the recent market moves and what they can expect going forward. There are several plausible explanations for the recent correction, including the potential effect of rising interest rates as the Federal Reserve Bank reduces its monetary stimulus and concern about the slowing of major overseas economies (particularly those of Europe and China). Our view at Santa Fe Advisors is that markets have become vulnerable to declines simply because they have become expensive after experiencing large gains since 2009. This is probably a good time to put the events of the last three weeks in perspective. First, the low market volatility of the last three years has been the historic exception rather than the norm. Although the stock market has delivered positive annual returns more than 75 percent of the time since 1980, it has also experienced average annual intrayear price drops of more than 14 percent during that period. Thus, on a historical basis, the recent correction to this point has been quite minor. That correction and the accompanying increase in volatility are not surprising given today’s relatively high valuations and a fair amount of investor complacency. One of the worst mistakes investors can make is to allow emotions such as fear to drive their portfolio asset allocation decisions. While it is difficult to buy into a falling market, a correction can offer disciplined investors the opportunity to invest at very favorable prices. While it might be psychologically easier to buy when the market is going up, buying into a rally can entice investors to take excessive risk, as they fear missing out on further gains. Acting on emotions increases both the risk of missing out on the strong returns that typically follow a bear market and also that of being overextended at a market top. At Santa Fe Advisors, we believe that an investment portfolio should always be constructed and managed consistent with the investor’s circumstances and risk tolerance. Only minor adjustments should be made based on prevailing market conditions and valuations. The appropriate size of a portfolio’s equity allocation is properly determined by a variety of factors, including liquidity, income, spending needs and time horizon. For example, a young investor with a long time horizon can generally afford to accept more volatility (and therefore have a higher stock allocation) than an investor nearing retirement. It is extraordinarily difficult to accurately forecast economic events and to predict market returns, particularly over the short term. Consequently, we make no attempt to do so. Rather, once we have implemented an “appropriately risked” portfolio for a client, we will make adjustments based on valuations in market asset classes and sectors. Given our view that stock valuations have been lofty (and therefore increasingly risky), we reduced equity allocations several weeks ago as a cautionary measure. Santa Fe Advisors’ chief investment officer, David Kantor, has posted an explanation of this move on our website (www.santafeadvisorsllc.com). We believe that a continued near-term decline in stocks is a distinct possibility and, in fact, is probably overdue. We have also received many questions from clients about bonds. High-grade bonds in particular have traditionally played a valuable role on client portfolios as a risk diversifier and income producer. Yet in the current environment of extraordinarily low interest rates, bonds represent unique and unprecedented risks, with little upside and a considerable amount of risk to principal. While slowing foreign economies and low overseas interest rates may keep U.S. rates down (and bond prices high) for some time, Santa Fe Advisors urges caution and recommends minimal exposure to intermediate and long-maturity bonds. David Marion is partner and CEO of Santa Fe Advisors LLC. Contact him at info@santafeadvisorsllc.com
ico’s premier forum for both beginning and professional data users in the state and surrounding areas. Over the years, the Data Users Conference has become a valued learning experience for businesses, government agencies, service organizations, information providers and students. This year’s featured plenary speakers include Pauline Nunez from the U.S. Census Bureau’s Denver regional office and Andy Hait with the Economic Census, both of whom are excellent resources on census data and products. Nunez will discuss new products from the Census Bureau and the new features of its American FactFinder Website. Additionally, new Bureau of Business and Economic Research Director Jeff Mitchell and Jack Baker are the
featured luncheon speakers. Mitchell, who took over as director this past summer, will present a review of New Mexico’s recent economic performance and a short-term economic outlook. Baker will present how GPS is working to help the Census Bureau manage spatial data resources and how this should lead to improved demographic estimates and a successful 2020 census. Registration is $55 per person and includes all conference materials, continental breakfast, beverage breaks and a luncheon buffet. For more information and a registration form, visit http://bber.unm.edu or call 277-3038. The New Mexican
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