The strategy seeks to create portfolios of Closed End Funds (CEF’s) that provide a high level of current income with the potential for capital appreciation.

We do not believe current economic conditions warrant a Fed policy which is so restrictive it might create an inverted yield curve. Unfortunately, the Fed has a history of tightening credit conditions until something breaks. We would like to believe this time will be different.

The fear of catastrophic trade wars, which would send the economy into a tailspin, has recently helped to increase volatility in the equity markets. 

The recent tax cuts have created a sense of euphoria in the equity markets as investors believe the cuts will serve as a driver of economic growth. While we believe they may stimulate growth in the short term, we are concerned about the mentioned headwinds for the economy and their drag on economic activity.

New rule (G-15) will require brokerage firms to disclose the mark-up or mark-down on bonds. The transparency caused by this rule will make fee-based models using Separate Account Managers more attractive going forward.

Our research shows inflation tends to be a late-cycle phenomenon. Since the fiscal stimulus is coming more than 8 years after the beginning of this economic recovery we should see some upward pressure on prices this year.