Newsletter Q4 2016
Where does that lead us? As contrarians, we have added to dividend paying stocks especially the beaten down and vilified healthcare sector. We are also positive on technology, mid and small cap stocks and international equities. As for bonds, we continue to have a diversified allocation and think much of the anticipated interest rate hikes are factored into municipals, leverage loan funds, etc. Although a stock market correction (10% pullback) is not out of the question, we will use it, and normal day to day market volatility, to upgrade portfolios into higher quality companies that are attractively valued, with solid balance sheets and that are strong cash flow generators.