Since the election, we have watched equity markets soar, bond yields rise dramatically and animal spirits returning to life.  Is this the beginning of new trends or the beginning of the end of the rallies that began in 2009?  The reality is that none of us know the future.  What we do know is that the two monsters of debt and demographics remain in the room and nobody is going to change their impacts.  And they have a far bigger impact than much of the optical engineering we are now witnessing with Trump-O-Nomics.  The equation we are dealing with is debt + demographics = no demand.

As we look toward 2017, we believe volatility will return to markets and what you don’t own will be as important as what you do.  It is time to play good defense and we will do just that while also capitalizing on the select value-based opportunities within today’s high yield market.  Click here to read our most recent market commentary, “Pricing Risk and Playing Defense,” in which we discuss our market outlook and corresponding investment strategy.