Highlights: 2nd Quarter Produces Portfolio Gains on Broadening Economy

The influence of index fund investors is a growing factor to be considered. Since many index investors lack knowledge of the underlying stocks within the index which they are investing, thus the moves tend to be emotionally not fundamentally driven. Further, given individual investors’ horrible performance track record (6% under the S&P500 for Schwab mutual fund investors per year), it provides opportunities to take advantage of stock price swings.

Specific to equity holdings, we remain diversified between investment strategies of growth stocks, value stocks and high dividend paying securities. Thus, some of the holdings will be leading while others may be long end, but overtime, hopefully our equity strategy will out leg the overall market.

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  Positive Earnings Revisions
  
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  Strong Financial Resources
  
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  Growth of revenues & profits
  
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  Stable to improving profit margins
  
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  Responsible policies on environmental, social & governance issues.
  

Dr. Janet Yellen is quietly shepherding the Federal Reserve policies to normalization investment policy coming out of the financial crisis. While her press conferences require excessive caffeine to stay engaged, it is difficult to find fault with her slow process of raising short term rates from 0% to 1% over the past year.