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Market Commentary

Our portfolio managers give you their analysis of current economic trends
within their targeted area of investment

Special Mid-Quarter Comment
February 16, 2018

The first half of Q1 2018 has brought back volatility to the equity markets with a vengeance! We experienced our first true “correction” in over two years with the market erasing most of the gains for the year in a rapid 10% decline. Blame seems abundantly spread, including derivative market index products, interest rates finally moving upwards, and many leading strategist predicting declines and urging caution. The mix most certainly weighed on investor emotions, and after the outperformance in 2017 it is understandable some would look to sell into the strong gains in January. The economic conditions remain the same as detailed in our year-end letter, and corporate earnings reports were better than expected, boding well for continued growth throughout 2018. As we express in our reports, we utilized the “volatility” to add new positions to the portfolio and increase some of our existing holdings. We continue to maintain our invested posture and our positive view on 2018 until economic conditions dictate otherwise. As of this report, the market has erased over half of the decline and is up approximately 2% for the year. As always, please do not hesitate to contact us if you have any questions. Thanks.

Core Strategy
Will Wurm
Will Wurm

PDF download Q4 2017 : A Strong Year

Summary: We are appreciative of the success in 2017 but we have more tempered enthusiasm for 2018 as valuations have generally increased in many of our positions thereby limiting upside. We continue to take our cues from economic data points and individual corporate reports and will make portfolio revisions accordingly. We remain positive and in an invested posture, willing to tolerate market fluctuations for longer-term appreciation.

Past issues:     Q3 2017     Q2 2017     Q1 2017     Q4 2016    

Municipal Fixed Income
Stephen Steglitz
Stephen Steglitz



PDF download Q3 2017 : Municipal Market Update

Past issues:     Q2 2017     Q1 2017