In absolute terms, our portfolio enjoyed a solid second quarter and while we recaptured some of the lost ground inflicted on high growth stocks towards the end of the first quarter, we continue to have work to do in catching the S&P 500’s 7.1% year to date gain.

Our goal is to outperform our primary benchmarks over a full market cycle, which has typically meant five or more years. While we have achieved this objective on a long term, net of fees basis, it has proven a more difficult feat in recent periods given the prolonged, stop and start nature of the recovery. The current economic cycle has not been typical.

While Fed policy has held unusual sway over the markets in recent years, over the long run earnings matter most to the direction and level of the stock market. For our thoughts on the portfolio and where we believe we head from here, please read our Market Review & Outlook.