Investing and Economic Commentary

As you may have seen in your trade confirmations, we added a small position in Citigroup (C) this morning. Our bullish view on the stock is based on a number of factors including 1) an attractive valuation, 2) expected revenue growth with disciplined cost control, and 3) a significant return of capital to shareholders (i.e., through both share repurchases and dividends).
As you have likely seen in your trade confirmations, we are reducing our over-weight exposure to mid-cap ETFs and raising our exposure to small cap ETFs.
Many value investors like to talk about the concept of ‘time arbitrage’. The idea is that there’s an opportunity to earn outsized returns simply being more patient than the short-term oriented Wall Street crowd.
In an effort to keep clients better informed regarding changes in portfolios, we are continuing to send periodic updates after transactions are completed. As you may have already seen in your trade confirmations, we have recently sold Consumer Staples Select Sector SPDR (XLP),
You may have seen we recently added Apple (AAPL) to your portfolio. We view Apple as an innovative hardware, software and service company with a strong growth trajectory, trading at an attractive ~15.0x expected earnings.
With a mixture of excitement and a touch of trepidation, we are wading into the great Facebook debate. Warren Buffett famously said that it’s wise to be ‘fearful when others are greedy and greedy when others are fearful.”
A pull-back in the equity market can be psychologically painful for those focused on the short-term, but it also can create opportunities
On February 6th, 2018 we provided an update on the surge in market volatility. This came on the back of our comments during the Fall seminar when we highlighted just how unprecedented this stretch of low volatility had been.
On Friday, the Labor Department reported that our economy added 313,000 jobs last month, about 100,000 more than analysts expected. Additionally, the prior two months numbers were revised upwards as well. The unemployment rate remained unchanged at 4.1%.
In an effort to keep our clients better informed regarding decisions in individual stock portfolios, going forward, we will be sending periodic updates after transactions are completed. As you may have already seen in your trade confirmations, we have recently established a position in McKesson (MCK).

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