Current Investment Strategy

• Large cap high quality names are the natural beneficiaries of the uncertainty in the market. Typically, a shift favoring these traits lasts for years not quarters.
• We remain overweighted in Energy as secular demand trends seem to favor higher prices. Short-term volatility is still at risk.
• We still find good values and positive earnings momentum in the Industrial stocks. Global infrastructure demands and the weak dollar support our overweighting.
• Recent aggressive actions by the Federal Reserve have caused us to selectively increase the Financial Services weighting.
• We remain underweighted in the Health Care sector, especially the pharmaceutical segment, due to continued political and regulatory pressures.
• We have overweighted the Information Technology sector. A weaker dollar and significant exposure to foreign markets should help the overall sector.

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