4Q15 Quarterly Commentary

Equity indexes rose in the fourth quarter off of a low 3Q ending level, but concerns over slow Emerging Market economic growth and high yield bonds intensified. Growth stocks continued their 5 year record setting string of outperformance versus value stocks as performance continued to narrow into a handful of mega cap momentum technology stocks. Valuation spreads between value and its opposites of momentum, low volatility, and quality are at historic extremes according to JP Morgan research. This is similar to 1999/2000, with Amazon, Facebook, Netflix and Google replacing Cisco, Microsoft and Nortel.