Adding to Small-Cap and Maintaining Low Turnover

The first quarter was fairly quiet in terms of trading as we maintained low turnover in our portfolio. We made a decision to increase our small-cap stock exposure by adding to our position in the iShares Core S&P Small-Cap exchange-traded fund (tkr: IJR). Small-cap stocks tend to be more volatile than large-cap stocks, which can be beneficial in an overall rising stock market. Smaller stocks also generally have more domestic exposure, which we believe will be a positive attribute given the … [Read more...]

Trump Trade

The Dow Jones Industrial Average continued its post-election ascent through February, hitting an all-time high of 21,115 on March 1. From the pre-election low to the March high, the market rose 18%. Since the election, investors bid up stock prices in anticipation that the impact of reduced regulations and fiscal stimulus would substantially boost corporate earnings. The Trump administration worked quickly after inauguration day to sign executive orders delaying implementation of new … [Read more...]

Stock Option Taxation

Individual investment positions detailed in this post should not be construed as a recommendation to purchase or sell the security. Past performance is not necessarily a guide to future performance. There are risks involved in investing, including possible loss of principal. This information is provided for informational purposes only and does not constitute a recommendation for any investment strategy, security or product described herein. Employees and/or owners of Nelson Roberts Investment … [Read more...]

Featured Equity: Constellation Brands Inc.

Constellation Brands (tkr: STZ) is a leading international alcoholic beverage company with sales of just over $7 billion. It is the third largest producer and marketer of beer (particularly imported and craft brews) for the US market and the world’s leading premium wine company. It is also expanding into the premium craft spirits market. Constellation Brands is focused on “premiumization” of its product portfolio to drive growth. We believe Constellation Brands will succeed because the … [Read more...]

The End of the Bond Bull Market

Bond yields have risen quickly since the election alongside expectations that a Trump presidency would follow through on a promise to increase infrastructure spending, which would lead to greater growth and higher inflation. The Federal Reserve followed the election in December by resuming federal funds tightening and hiking its target rate by 0.25%. The move was expected, but the market was surprised by the announcement that the Fed plans three additional 0.25% increases in 2017. Together, … [Read more...]

What is a Fiduciary?

Individual investment positions detailed in this post should not be construed as a recommendation to purchase or sell the security. Past performance is not necessarily a guide to future performance. There are risks involved in investing, including possible loss of principal. This information is provided for informational purposes only and does not constitute a recommendation for any investment strategy, security or product described herein. Employees and/or owners of Nelson Roberts Investment … [Read more...]