One of the most vicious reversals in our memory (30+ years in this business) occurred midday Friday in technology as the sector opened higher, but closed substantially lower as investors rotated into those sectors that have not participated in this year’s rally. In fact, both the Dow Jones Industrial Average and Russell 200 Mid-Cap Index closed at record highs. What to do? Pare back some of your positions in technology at the periphery, but don’t go hog wild as we believe that despite Friday’s carnage there exists long-term value in tech names. However, they did get overheated on a short-term basis. Be patient and look to buy some of these names as the selloff might continue for a few more days. Have your shopping list ready. According to FactSet, “for Q1 2017, the blended growth rate for the S&P 500 is 13.6%. If 13.5% is the actual growth rate for the quarter, it will mark the highest (year-over-year) earnings growth rate for the index since Q3 2011 (16.7%).” Although stocks look a bit stretched at these levels given the trials and tribulations of the Trump Administration, the earnings picture provides solid support not far below. In addition until this upward trend is broken in a meaningful way it is difficult to envision a bear market with this earnings support. Furthermore, should President Trump make some headway on tax and/or healthcare reform, stocks could head higher. For now, we continue to be tilted toward the optimistic side. Stay diversified. There is no need to be a hero. Your portfolio must be measured against your long-term objectives. Do not be caught up in the day-to-day noise of the markets.