Winter Letter To Clients {Conclusion}

Today we conclude our most recent letter to clients.  Our next post will be sometime mid-week.

A Few Final Thoughts.

There are always worries in the markets and often it’s the event that nobody pays attention to that harms us the most.  That being said the current weight of the evidence seems to suggest that the underlying foundations for a positive market environment are still in place.  There is a higher probability that volatility will return in 2018.  However, it is the price investor’s pay for liquidity.  It is the market’s internal reset mechanism.  Investors should expect some volatility and should accept that sometimes prices will correct.   

Remember that whatever faults one may find with the current President, we currently have an Administration that is demonstrating a pro-growth business agenda.  If the Administration can continue executing on this plan then it has the potential to be good for our economy and ultimately good for the markets.  As such I think buyers will be found when volatility returns.  In that scenario investors will likely be rewarded for picking good solid ETFs that have appreciation potential as well as those that pay dividends and also using cash reserves to pick at bargains when the next correction finally occurs.

**Long ETFs related to the S&P 500 in client and personal accounts.  Short S&P 500 in a personal account as part of a separate individual strategy.