One of the pillars of our process for investment management is to position ourselves to protect capital as much as possible. To put it another way, we are managing risk.

First, we have seen 9 years of a nice run in the market. Your portfolio return last year reflected some of that run up. Frankly, it has been more of a sprint than a marathon. Stock prices have become highly valued. When that happens, it is healthy to see some pullbacks from time to time in order to prepare for future up-trends.

We are committed to protecting on the downside and we have evaluated our positions. That is why we have made some defensive adjustments in your portfolio.  We’re anticipating there will be a buying opportunity down the road.

On a positive note, fundamentally the economy is very strong. Earnings for corporations have come in strong. The unemployment rate is low. And the tax cuts for business will assist for additional growth in the future.

In conclusion, we wanted to communicate to you so you know that your investment managers are watching your accounts. We will continue to update you when additional changes take place. As a reminder, do not let the investment performance deter your perspective on your plan and long term goals. There will always be fluctuations and that’s why you hired us.

Thank you for your trust,

PFG Private Wealth Management, LLC