Fall 2017 Investor Letter: The Hated Rally Continues

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Includes: BXUB, BXUC, CRF, DDM, DIA, DMRL, DOG, DUSA, DXD, EEH, EPS, EQL, ESGL, FEX, FWDD, GSEW, HUSV, IVV, IWL, IWM, JHML, JKD, OTPIX, PPLC, PPSC, PSQ, QID-OLD, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RWM, RYARX, RYRSX, SCAP, SCHX, SDOW, SDS, SFLA, SH, SMLL, SPDN, SPLX, SPSM, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU-OLD, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, USA, USSD, USWD, UWM, VFINX, VOO, VTWO, VV, ZF
by: David I. Templeton, CFA

Our Fall 2017 Investor Letter has a music lyrics theme to it, and since we have an age diverse team as it relates to the employees of HORAN Capital Advisors, so goes the taste in music for our colleagues, as readers of the newsletter will find out. As Chuck Prince, former chairman and CEO of Citigroup, said almost a decade ago, "As long as the music is playing, you got to dance." This seems to be one of those markets where the music just doesn't seem to stop, and just maybe has resulted in one of the most hated equity market rallies in some time.

The Fall 2017 Investor Letter touches on a number of topics, including the unwinding of the Fed's balance sheet, low interest rates and the negative impact on income generation for investors and the benefit achieved by investors that have pursued diversification outside of the U.S. equity market.

For additional insight into our views for the market and economy, see our Investor Letter below: