perspectives

The gap between price and valuation has widened for the largest US stocks in aggregate.

After an initial downturn in January and early February, markets ended the quarter marginally higher.

At the conclusion of 2015, we observe that the relatively flat returns for the year across major equity and bond indexes obscures the heightened market volatility.

In this quarter’s commentary, we outline a few observations from the markets that we believe have been overlooked so far, and discuss our approach going forward.

We expect market volatility to become more noticeable going forward; but focusing on fundamental measures of macro-economic and company-specific health, growth, and profitability will benefit investors in the long-term.