WEBVTT

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This week,

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I thought it might be a good idea
to review

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some of the broad issues that we believe
are likely to impact

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investors
and their portfolios in the coming months.

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With the pace of change on the tariff
and geopolitical fronts

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moving fast and sometimes
adjusting on a day to day basis,

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investors are wondering what they might do
to help navigate the uncertainties.

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We are assuming that these uncertainties

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will be in play for the next few months,
if not longer.

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We want to have a plan to help us navigate
through the bumpy markets,

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but also one that seeks
to take advantage of opportunities

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that may present themselves.

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First rule of thumb, or our plan,

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is to focus on quality
in a diversified manner.

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For example, in the equity market,

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we continue to favor
large and mid-cap equities over small.

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Large capitalization companies

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generally tend to have stronger balance
sheets,

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more dependable cash flows,

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easier access to credit,

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and the ability to buy back shares,
along with a wider

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range of products and services
than their smaller competitors.

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In our view, a preference for a U.S.

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large capitalization companies translates
to a preference for higher quality

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equities that can potentially weather
an economic slowdown.

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When it comes to specific equity sectors,

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we carry a most favorable rating
for the energy sector and are favorable

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rating on information technology,
financials and communication services.

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We believe the sectors feature long term

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growth drivers and robust balance sheets.

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We believe investors can consider
putting funds

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to work in these sectors
at the current market levels.

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In our view,
the pullback in stocks can offer

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long term investors
an attractive entry point.

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Analysts expect

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that the Federal Reserve will cut
interest rates three times this year.

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If growth slows and unemployment rates
tick higher, as we expect.

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We believe the yield on the ten year
Treasury note

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will end the year in the 4 to 4.5% range.

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Our approach in the fixed income
market is to be selective and focus

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on investment grade, corporate bonds
and essential service

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municipal bonds in a 3 to 7 year
maturity range.

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A number of other major central banks
have been in the rate cutting mode.

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We believe these rate cuts should help
the global economy perform somewhat better

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as we move through
the second half of this year into 2026.

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Our current assumptions and projections
for asset class performance encourages

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us to stick with higher quality equities
and fixed income exposure.

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The near-term road ahead
will likely be bumpy,

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with geopolitical headlines
driving financial markets

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on a day to day basis and week to week
basis.

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The US is in the early stages
of a trade policy

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negotiations
with a number of our trading partners.

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We believe this will likely take time
to reach

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the final agreements
with many of these partners.

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In summary,

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the key takeaways are the pace of change
on the tariff and geopolitical front

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is moving fast
and adjusting on a daily basis,

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as well as our current assumptions
for asset class performance encourages

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us to stick with higher quality equities
and fixed income exposure.