The price per share of companies that would benefit from tax reform continued to perform well while those that would not be as positively impacted (specifically technology) continued to struggle early in the week but rebounded during the latter part. We do believe the recent period of severe underperformance by tech is most likely over. However, as we noted last week the period of outperformance may also be over at least for the balance of 2017. That said, we continue to favor health care, industrials, the financial services sector as well as select technology companies. Economic fundamentals are strong enough, corporate earnings have come through and interest rates should remain low – all factors that should provide support for equities at or near these levels. We have noted continually that there remains an upside bias and the downside appears somewhat limited. We see no reason to alter this posture. In addition even if the upward trend that has been in place since the election is broken it is still difficult to envision a bear market. 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.
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