With all the uncertainty we see surrounding trade wars, trade treaties, the Federal Reserve and interest rates, along with slowing economies in Europe, there has been a disruption to the markets since the beginning of October. We feel it is important to communicate with our clients about these events. The US stock markets have not experienced a significant correction in quite some time, and healthy markets usually take a pause and correct to the tune of about 10% annually. We are seeing signs of a slowing, yet still healthy economy, with no recession in sight. Our “Volatility Reduction Strategy” (VRS) indicators turned negative for the S&P 500 as well as other major indexes we follow last week and we acted. For accounts in our managed platforms, and for the single fund solutions in your accounts, equities/stock market exposure has been reduced across all of the Gescher Herber Portfolios and Russell Model Strategies. If the economy or other factors dictate another move either positive or negatively, we are ready to act.

We now take this moment to relax and enjoy the season. Your relationships are special to our team, and we wish the best to you and your families during this time of year.

Merry Christmas !

The Gescher Herber Group

Todd, Jason, Deb and Rachel