Current Investment Strategy

The economy is moving from recovery to expansion. During initial recoveries, low quality stocks usually lead. During expansions, higher quality stocks tend to perform better.
Value factors have performed better than growth recently. We believe our intrinsic value discipline positions us well to benefit from this.
Our portfolio positioning favors groups that should do better in a lackluster, but intact, economic recovery.
Themes we favor include companies that benefit from consumer frugality and export-driven companies. We also think that low rates will prompt mergers and acquisitions.
Our dividend yield is higher than the S&P 500; and as we add new names, we are looking for higher yielding stocks where possible.
The market remains in a near-term trading range. As investors get clarity on the upcoming election, possible Chinese actions to stimulate their economy, and continued earnings progress, we think it should act better moving into year end.