Investment Recap Third Quarter 2017

The 3rd quarter was a very good period for Winslow stocks and our year to date returns through September 30, 2017 were approximately 16%, comfortably exceeding the market averages. Much has been written about this Bull Market being the most hated in memory and we would certainly concur with that view. Clearly, some skepticism and fear is due to the fact that there had been two significant 50% market declines in the last 17 years; the bursting of the Tech Bubble in year 2000 and, of course, the financial crisis of 2007-2008.
Stock market history indicates that it is more common to have just one enduring crisis per generation. Therefore, it is quite understandable that many investors and observers have a degree of (PTSD) Post-Traumatic Stress Disorder or to quote a phrase from business school, many are “looking ahead through a rearview mirror”. The signs of recession are just not evident nor are there signs of the end of this Bull Market. There is substantial liquidity on the sidelines including approximately $800 Billion cash in the hands of private equity managers. Interest rates and inflation are low and companies are benefiting from deregulation as well as the prospect for tax cuts. We continue to find stock “values” within the overall market.