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We Say Goodbye to George H.W. Bush

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America Takes Pleasure in the Royals

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France fires back at Trump's lack of "common decency"

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May Market Update

May Market Update

The stock market remained quite volatile in May.  First quarter earnings continued to be robust, but as earnings season receded the focus shifted to tariffs and the potential for a trade war, rising interest rates, and a re-emergence of the European debt crisis from earlier this decade.  My outlook is cautiously optimistic.  Valuations are somewhat more attractive now due to a market that has gone nowhere this year even as earnings have leapt higher.  Meanwhile interest rates, while higher, are still low on an absolute basis.

 

The entire consumer staples sector is out of favor to a bizarre degree.  Usually these stocks are among the most stable in the market because of their strong brands and recurring demand.  Investors are now focused, however, on changing consumer preferences and higher interest rates. I believe it is overdone and consider it a compelling opportunity.  The two stocks from this sector that we own in my fund are Procter & Gamble and Kraft Heinz.

Michael Berlin can be contacted at mberlin@mhbpartners.com and at (631) 629-4928 .

The information included in this article is not intended to be used as a basis for making investment decisions nor should it be constructed as a recommendation to buy or sell any specific security. Consult your investment professional for additional information and guidance.
 

 

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