Click Here for a PDF of the Newsletter
Section Summary
- Passive v Active Investing – Has the debate moved from a thoughtful discussion to fact? What are the risks of a one-sided discussion as passive flows dominate active? Are we in a passive bubble?
- Market Notes – Despite a considerable amount of political items filling the front pages and taking up time on television, market participants continued to weigh economic trends and corporate progress when voting their opinions. Over the long-term we think this is the most prudent course of action.
- Equity & Fixed Income Comments – We continue to favor emerging markets and small- to mid-cap companies among foreign equities and large-cap companies among domestic equities. We continue to scale back corporate credit and favor high quality corporate bonds where we do have exposure. We moved to underweight interest rate risk.
- Research Focus – We visited the Putnam Tax-Free High-Yield team during the quarter and share our takeaways from this “boots on the ground” part of our research.
- Client Focus – What does it mean to be a Fiduciary? We discuss Department of Labor change and our beliefs.