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3Q 2016 Market Update 
Catherine Head Shot

     As Yogi Berra so famously said: "It ain't over 'til it's over". Which perfectly sums up our current situation vis a vis the outcome of the US Presidential Election. While most people predict Hilary as the winner, I would like to remind everyone that as late as the morning of the Brexit vote, it was considered a "done deal" that Britain would stay in the EU.
    Moving into October we should expect the unexpected while remembering that volatility can create opportunities.   At the end of the 3 rd quarter the market was up 7.84% in a year with subpar earnings and GDP growth. Bonds have become overvalued making stocks look even more attractive.
 
Please feel free to call with any questions.

Warm regards,
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Catherine Maniscalco Avery
 
The backbone of CAIM is to employ a classic long term investment strategy including dividend paying stocks. CAIM is an independent, women owned investment management firm specializing in managing investment portfolios for women and baby boomers.

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October 19, 2016|  Issue No. 76
In This Issue
3Q 2016 Market Update
Freshman Financially Responsible?
2Q Market Update 2016
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3Q 2016 Market Update 
 
Despite all the uncertainty we have faced this year, the market has had some attractive returns. The SP 500 is up 7.84% year to date and up 3.85% for the 3rd quarter.  On average, our equity only portfolios are up 9.17% year to date and 2.72% for the quarter.  
The positive sectors in our portfolio this year have been the cyclicals.  Areas such as industrials, materials and information technology have done well due to a stabilized dollar and improvements in the emerging markets. And we continue to expect these groups to do well because whoever winds up in the White House will maintain a focus on infrastructure rebuilding.
The quarter was not an easy one. It started off with a rebound from the Brexit decision, which later subsided as we began to fear a hike in interest rates.  Ironically, even though the data supported an increase in rates, the Federal Reserve decided to leave them unchanged.  The reasoning offered was that there is still a lingering fear of global economic pressures.  From this point on, the market rallied into the close of the quarter but failed to extend the highs reached in the quarter.
From now until the end of the year, the focus will remain on the election, its' outcome and the anticipation of interest rate hikes in December.  Whether or not this happens, we still believe that interest rates will remain historically low for a period of time.  Further, the volatility created by such an increase will create a buying opportunity for investors.
 
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Is Your College Freshman Financially Responsible?

Going away to college is an exciting time for students. Often it's their first real experience of independence away from their families.   However, with all the new challenges involved, it can also be ... Read more
  
 
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2Q Market Update 2016
 
Investors most likely entered the 2nd quarter with two questions on their mind: Will the Fed raise rates this quarter and will  ... Read more
 
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