March 2018 Market Letter

It’s baaaaaaaack!

I guess that it was simply too good to last. January’s market performance was nothing short of perfect. Stocks continued their upward trajectory and the atmosphere for investors was as placid as a serene summer pond. In stark contrast, February had more action than all of 2017 combined. At the heart of it all was the return of that multi-headed hydra of angst and turmoil called volatility.

The VIX, or Volatility Index, was at historic lows throughout most of 2017, with readings breaking below the 10 mark on several occasions. Equities and their owners acted as if they hadn’t a care in the world. But when we had our…

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February 2018 Market Letter


“Giant steps are what you take

Walking on the moon

I hope my legs don’t break

Walking on the moon

We could walk forever

Walking on the moon

We could live together

Walking on the moon”

We go back to 1979 for one of the greatest hits by Sting and The Police. I was reminded of this song while I watched President Trump take a victory lap during his first State of the Union address.  Certainly, the stock market has been breathing rarefied air since his administration began. Although he cannot take full credit for equity performance (stocks were doing fine during the Obama Presidency and the economy was improving), some of his economic policies have added…

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End of 2017 Market Letter

Faster than a speeding bullet! More powerful than a locomotive! Up in the air… look! It’s a bird… no, it’s a plane… no, it’s Super Tax Reform!

It only took 31 years, but we now have substantive tax change on our hands. While the scope of the bill is massive, the promised effect for America’s middle class will be muted. Here’s a short list of the winners:

– The ultra-wealthy, since the estate tax exemption doubles to basically 11MM per person

– Corporations whose top tax rate declines from 35% to 21%

– Individuals and small business who can take advantage of pass-through entities

– Lower to middle income families with multiple children

– Hedge…

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December 2017 Market Letter

“The hardest thing in the world to understand is the income tax.” – Albert Einstein

“The income tax created more criminals than any other single act of government.” – Barry Goldwater

“The purpose of a tax cut is to leave more money where it belongs: in the hands of the working men and women who earned it in the first place.” – Bob Dole

“It’s beginning to look a lot like Christmas.” – Bing Crosby

As we near the end of a historic November, I hope that everyone had a nice Thanksgiving holiday. It’s always my favorite… good food and companionship with no overhang of expectations for the proper gift. Investors had plenty…

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