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Eeny, Meeny, Miny, Moe 12/31/2015 Just like the children’s rhyme that has many creative ways of continuing until the desired result is achieved, investors in 2015 seemed to have an insatiable appetite for stocks and made their investment decisions in a similar fashion….finding creative ways to justify their decisions. Good economic news was good for the stock markets …. while bad economic news was also good for the stock markets because it meant continued free money from the Federal Reserve. However, this game masked the real problems of what appears to be a somewhat stable US economy but one with very sluggish wage growth and facing very harsh international winds. Additionally, the constant concern of international terror has the ability to derail, even if temporary, an already unstable economic footprint. When coupled with the three hundred pound gorilla of the multitude of unknown pockets of “excess” created by an overextended and very accommodative monetary policy that left interest rates near zero for far too long, the risk of near term future market decreases far outweighs the opportunity for market gains. Stock markets that choose one day to rally on good economic news and then the next day to rally on poor economic news are very dangerous just like a rudderless ship. We have witnessed these market dynamics once before in 2000 when the Internet bubble went “boom” and many of you perhaps remember the outcome. Investors kept making up reasons to push stocks higher and higher with no fundamental basis. Like now, we felt very uncomfortable when managing previous portfolios during that period with the upside potential for equities and the stock market given the associated risk and repositioned a vast majority of our client’s capital to alternative assets like bonds and other fixed income opportunities. Herein lies the difference in the active investment style of Cambridge Capital Group versus many other investment managers who utilize mutual funds and ETFs that are, by and large, barred from making these bold repositioning investment decisions which leaves the responsibility to the investor. We began planning for this setback in July 2015 by assisting many of our future clients in repositioning their portfolios even though they were maintained by outside custodians. While we fully expect the stock markets to “retest” their lows of August 2015, hopefully they will then began to develop a base upon which to make a solid improvement on the back of true fundamental reasons and not continuing a children’s rhyme until they find the answers they want. However, this will take time and other than short term trading opportunities, we believe that equities and the stock market is not the best asset class to employ your capital. Therefore, we will continue to allocate a vast majority of investment capital to bonds and other fixed income opportunities with no exposure to the stock market while using our equity option fund to take full advantage of the short term trading opportunities as well as developing necessary hedging positions. Once again, thank you for giving us the opportunity to work with you and your family in the near future. Please do not hesitate to give us a call at 850-270-9898 if you have any questions. We do see a lot of unique opportunities in the near future. Cambridge Capital Group