2nd Quarter 2018 Market Commentary

This is the first of many market commentaries that I will be sending to you going forward at the end of each quarter. I hope that you find it useful:

What a year that it has been already! After a strong finish at the end of 2017 and the beginning of 2018 we saw continued strength in the stock market and the general economy.
Then reality set in. As we all know from practical experience, nothing lasts forever. Investors and money managers took a look at what was being discounted in the markets going
forward and the current risk that went along with it. It made some people think twice about the valuation of assets and maybe it might not be a bad idea to take some money off of the table.

At the end of the 2nd quarter you had some real mixed results. The S&P 500 was slightly positive but the Dow Jones Industrial Average was negative YTD along with the international markets
down 5-10% by the end of June. Put that together with the bond market that was also down for the year and you get some very mixed results. Don’t get me wrong, going into the second half of
the year I still feel positive about the market and the strong economy that we have but there is a lot of noise out there that investors are nervous about. I have always said that to be good investor or money manager you have to look through the noise and keep your eye on the fundamentals which currently are fairly good.

So looking at the next 6-12 months going forward I will be watching for any fundamental signs of weakness in the economy or the markets, but for the time being I don’t expect to make any major changes in our current allocation. Toward the end of last year I did make a change to hedge or defend against rising interest rates which have a negative effect on portfolio’s, and that has worked out fairly well in the last six months.

Frank and I would like to thank all of you for your support and patience as we opened up our new firm just celebrating our 1 year anniversary in May. We feel that by doing this it gives us the freedom and flexibility to help our clients navigate through a much more complicated world without the restrictions of working at a big firm.

We hope that you enjoy your summer and stay in good health!