FYI:
Regards,
Ted
December 15, 2016
Preview Clip:

Dear WEALTHTRACK Subscriber,
The U.S. has been the place to be for investors this year, even more so after the election of Donald Trump as President. Since November 8th, U.S. stock markets have been on a tear, reaching new records and extending their lead over international markets by a substantial margin.
As a recent Wall Street Journal headline put it: “The global dominance of U.S. stocks has been boosted by the post-election rally”, as well as the strength of the U.S. dollar, which has also been appreciating rapidly against other currencies. It hit a 14 year high Thursday against a basket of currencies. The market capitalization of U.S. stocks reached over $25 trillion in December, comprising more than 40% of the world’s stock market value, levels not seen since 2006.
No other country comes even close. Despite rapid gains in China’s stock market size and value, it still has less than a 10% share of global market value.
With low unemployment, corporate profits expected to pick up and stimulus anticipated from infrastructure spending, corporate tax cuts and regulatory roll backs more investors are jumping on the bullish bandwagon. Even the Federal Reserve acknowledges that economic conditions have improved significantly enough to allow it to boost interest rates this week, for only the second time in a decade. The way things are going, Fed Chairwoman Janet Yellen expects to raise interest rates another three times next year, in 25 basis points, or a quarter of a percentage point increments.
Improving conditions and this positive outlook are why the message from this week’s guest is such a stunner.
In a WEALTHTRACK exclusive, Wall Street’s top ranked investment strategist is saying it’s time to put on the brakes and get much more defensive!
He is François Trahan, Co-Founder, Partner and head of the Portfolio Strategy team at Cornerstone Macro, an independent macro research, policy and strategy firm he and his partners launched in 2013.
Trahan was recently inducted into the All-America Research Team Hall of Fame by Institutional Investor magazine, having been ranked the number one portfolio strategist for 10 of the past 11 years by institutional investors.
Up until recently Trahan was correctly bullish on the US stock market, as he has been for well over a year.
No more. He is adamantly telling clients that this rally should be sold. He will explain what has changed.
If you’d like to see the show before it airs, it is available to our PREMIUM subscribers right now. We also have an EXTRA interview with Trahan about what he describes as investing’s great mystery. Intrigued?
Plus, WEALTHTRACK is available on a YouTube Channel. So if you are unable to join us for the show on television, you can watch it on our website, WealthTrack.com, or by subscribing to our YouTube Channel.
Thanks for watching! Have a great weekend and make the week ahead a profitable and a productive one.
Best regards,
Consuelo

am not anyone's client except for several mutual fund firms but am more nervous than going wild ,Right or wrong I am redirecting mutual fund distributions toa short term bond fund therefore reducing risks without generating additional capital gains I have now learned that after a seven year bull market one should not have actively managed mutual funds in a taxable account. 10% distributions cut into returns even if the fund outperforms

Maybe BlackRock, Capital Group, Dreyfus, Fidelity, and J. P. Morgan with two or three "Total Return" funds signaling multi-sector EM bond?

FYI: (Interest sensitive sectors, Utilities & Real Estate down over 1%) Ted
U.S. stocks fell in volatile trading on Wednesday after the Federal Reserve raised interest rates by a quarter point and signaled hikes could come next year at a faster pace than some expected.
Regards,
Ted
Bloomberg:
https://www.bloomberg.com/news/articles/2016-12-13/asian-futures-tip-more-gains-as-fed-day-dawns-with-dollar-steady
Reuters:
http://www.reuters.com/article/us-usa-stocks-idUSKBN1431G1
MarketWatch:
http://www.marketwatch.com/story/dow-set-to-hang-tight-just-under-20000-as-fed-decision-looms-2016-12-14/print
USA Today:
http://www.usatoday.com/story/money/markets/2016/12/14/dow-20000-quest-stocks-wall-street/95415458/
IBD:
http://www.investors.com/market-trend/stock-market-today/fed-rate-hike-oil-slide-hits-stocks-hospitals-hit-by-senate-scrutiny/
CNBC
http://www.cnbc.com/2016/12/14/us-stocks-open-slightly-lower-as-fed-announcement-approaches.html:
AP:
http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP
WSJ Markets At A Glance:
http://markets.wsj.com/us
Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker
Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors
Current Futures: Negative
http://finviz.com/futures.ashx

Hoover would be a kiss of death but nevertheless, with promises of lowered taxes on cap gains and divi's, the markets are sure to do well barring any negatives that occur.

Why waste column inches? Regarding a sibling PRIMECAP-run fund, they'd already written:
"Capital Opportunity is closed to new investors, but you’re in luck if the fund is offered in your employer-sponsored retirement-savings plan—that rule doesn’t apply."
Also, VPMCX is open to some Flagship retail customers.
http://mutualfundobserver.com/discuss/discussion/15805/vanguard-fund-changes-to-primecap-and-primecap-related-funds

@msf: Someone should tell Kiplinger Vanguard Primecap Admiral & Investor Shares are closed to new investors !
Regards,
Ted
Best Vanguard Funds for Your Retirement Savings
Vanguard Primecap: BUY
Symbol: VPMCX
Expense ratio: 0.40%
Assets: $47.4 billion
One-year return: 11.2%
Three-year annualized total return: 12.8%
Five-year annualized total return: 16.7%
Ten-year annualized total return: 9.3%
Yield: 1.4%
From Primecap’s debut in 1984, the fund returned 13.4% annualized, handily beating the S&P 500 by an average of 2.4 percentage points per year. Few funds have done better. Primecap is closed to new investors, but if the fund is offered in your employer-sponsored retirement-savings plan, you can ignore that rule.
Primecap Management, the fund’s subadviser, runs this fund the same way as Capital Opportunity. Each of the fund’s five managers independently runs his own slice of the fund’s assets. But they all follow the same approach, focusing on large and midsize companies with strong growth potential that are trading at reasonable prices.
Note: On November 15, 2016, we changed our rating on this fund from Hold to Buy
Vanguard Website:
https://personal.vanguard.com/us/funds/snapshot?FundId=0059&FundIntExt=INT

FYI: If the postelection stock market rally continues at its current pace it could be the largest stretching back to the gains scored in the wake of Herbert Hoover’s 1928 election victory.
Regards,
Ted
http://www.marketwatch.com/story/trump-rally-could-mark-biggest-postelection-stock-market-rise-since-hoover-2016-12-12/print

https://www.sec.gov/Archives/edgar/data/1423047/000116204416002687/kimberlite497201612.htm
497 1 kimberlite497201612.htm
KIMBERLITE INVESTMENT TRUST
Supplement to the Prospectus dated December 12, 2016
Effective as of December 12, 2016, Kimberlite Floating Rate Financial Services Capital Fund (the “Fund”), a series of the Kimberlite Investment Trust (the “Trust”), will end the public offering of its shares. Accordingly, shares of the Fund are no longer available for purchase. The Fund will continue to operate until the soonest practicable date on or after December 16, 2016 (the “Closing Date”), when it will be liquidated.
The Board of Trustees of the Trust (the “Board”), in consultation with the Fund’s investment adviser, Kimberlite Asset Management, LLC (the “Adviser”), made the determination to end the Fund’s public offering and to discontinue the Fund by unanimous vote of the Board during the Board Meeting held on December 12, 2016, based on, among other factors, the Board’s determination that the Fund’s current asset size, recent purchase and redemption history and projected expenses and expense structure indicate that it is unlikely that the Fund will grow for the foreseeable future. Through the date of the Fund’s liquidation, currently scheduled to take place on the Closing Date, the Adviser will continue to waive fees and reimburse expenses of the Fund, as necessary, in order to maintain the Fund’s fees and expenses at their current level, as specified in the Prospectus.
As of December 1, 2016, in response to market conditions, the Fund assumed a temporary defensive position and converted all of the Fund’s portfolio securities to cash. In connection with the liquidation: (i) the Fund will remain in cash until Closing Date; and (ii) all outstanding shareholder accounts on the Closing Date will be closed and the proceeds of each account will be sent to the shareholder’s address of record or to such other address as directed by the shareholder including special instructions that may be needed for Individual Retirement Accounts (“IRAs”) and qualified pension and profit sharing fund accounts. In addition, the Fund’s redemption fee for all shareholder redemptions on or after December 12, 2016 is eliminated. As a result of the Fund’s cash position described above, the Fund’s normal exposure to investments has been eliminated. Accordingly, shareholders should not expect the Fund to achieve its stated investment objective.
Shareholders may continue to freely redeem their shares on each business day during the Fund’s liquidation process. The distribution of proceeds from the closing of shareholder accounts remaining on the Closing Date will be considered for tax purposes a sale of Fund shares by shareholders, and shareholders should consult with their own tax advisors to ensure its proper treatment on their income tax returns. In addition, shareholders invested through an IRA or other tax-deferred account should consult with their own tax advisors to understand the rules regarding the reinvestment of these assets. In order to avoid a potential tax issue, shareholders may choose to authorize, prior to the Closing Date, a direct transfer of their retirement account assets to another tax-deferred retirement account. In addition, shareholders generally have 60 days from the date of the liquidation to invest the proceeds in another IRA or qualified retirement account; otherwise the liquidation proceeds may be required to be included in the shareholder’s taxable income for the current tax year.
If you have any questions regarding this Supplement, please call (855)- 318-2804.
Investors Should Retain this Supplement for Future Reference

Holy INSIGHT, Batman! ...Cripes, I've maintained this very approach ever since I began to learn my very first lesson in investing, going back to the 1990s. I listened and read a lot, and made a habit to watch PBS each week when Lew Ruckeyser offered his corny-jokes and puns in his opening monologue for "Wall Street Week." I paid attention AND "read between the lines" as I heard each panelist's weekly contributions. I realized that the first step was to learn how to translate all of the "money-speak" lingo. It helped me to find and identify their professional thought-matrix, even if I did not give it a name, for my own purposes. (The talking heads and guests on CNBC need to be constantly translated in one's head, as they go along, too.) Being able to just know it when I heard and saw it was (and is) good enough--- at least for starters. THEN, I could learn to MAKE something of it all. Along the way, I learned to hear the double-speak underneath the actual words being expressed. "Tax Reform" = making things better for Capital and screwing Labor, for example. Avoiding any talk about the underlying POLICIES being advocated and instead deciding to speak in terms of mechanics of the Market, is the "common currency." It's more politically correct to go about it THAT way, between Talking Head-host and Prestigious Guest.
Examining financial statements and doing analyses are Science. How one uses the information is Art. (All things being equal---and they never are--- why invest in A instead of B, when they look the same in terms of fundamentals? Ding!) One's investing elan needs to be tempered with skill, a certain legerdemain. Thus, I assert, the validity and usefulness of the paradoxes to be found in the likes of The Zurich Axioms. Eh???
Here, you can click on the link that will let you open or download the Axioms via .pdf:
http://r.search.yahoo.com/_ylt=A0LEVr1ArE1YBa0ASO0nnIlQ;_ylu=X3oDMTEyNnJkMjI2BGNvbG8DYmYxBHBvcwMxBHZ0aWQDQjI1ODBfMQRzZWMDc3I-/RV=2/RE=1481514176/RO=10/RU=http://www.forexfactory.com/attachment.php/706430/Zurich_axioms/RK=0/RS=vlCWaQCq0eLSeDxZtls.pv6Awv8-
...I hope it works for you all. ...At the same time, I hasten to add that I've never been able to perfectly follow Max Gunther's advice, here. I doubt it can be done, and I doubt it was ever written with that intention. The attempt would be to confuse the Art with the Science of the whole thing. ;)
Follow-up edit: Crap, that link is dead now. But Yahoo, as a kind afterthought, will allow you to click on THEIR OWN link to the same thing, once you click on my original link. Stupid stuff.

I have owned FDSAX for a good number of years and it is my second largest holding, behind SVAAX, in my domestic equity sleeve, consisting of six funds, found in the growth & income area of my portfolio.
This is a fund that I have been increasing my position in through the years during market pull backs along with most Decembers after it makes it's year ending distributions as it re-positions about a third of it's holdings annually. With this, it usually produces a good capital gain payout each year along with good dividends paid quarterly. You can reference it's capital gain and dividend payout detail through the Morningstar fund report link provided by Ted.
For me, this fund has been a good steady, value seeking, growth and income producer.
Old_Skeet

Has anyone posted re: Mairs & Power? Here it is:
Growth, Balanced and Small-Cap.
https://www.mairsandpower.com/news-and-updates/208-2016-capital-gains-and-dividends

Not that estimates are ever accurate, but inconsistent dates raise additional questions about the JPMorgan Funds.
The cap gains estimates (posted above by shadow):
https://am.jpmorgan.com/blob-gim/1383381886694/83456/2016 JPM Funds Capital Gains Estimates - Final Posting.pdf?segment=AMERICAS_US_ADV&locale=en_US
This page,created Oct 12, shows record dates of Dec 13-15, depending on fund.
Another page, created November 11, shows record dates (but not estimates) for income and cap gains distributions shows record dates of Dec 19, 27, and 29, depending on the fund.
https://am.jpmorgan.com/blob-gim/1383373248579/83456/4Q-Dividend-Calendar.pdf?segment=AMERICAS_US_ADV&locale=en_US
It's possible that for funds distributing both income and cap gains divs, this page is reporting the record date for the income divs (which are typically on the same date as cap gains or later). So that could explain the mismatch.
Regardless, this mismatch makes me somewhat more suspicious than normal about the estimates.

FYI: Helping investors find quality stock opportunities in foreign markets, Janus Capital Group launched a smart-beta dividend exchange traded fund that targets global companies with a solid track record.
The Janus SG Global Quality Income ETF (NasdaqGM: SGQI) began trading Thursday. SGQI has a 0.45% net expense ratio.
Regards,
Ted
https://www.etftrends.com/2016/12/janus-rolls-out-a-global-quality-dividend-etf/

The markets endured a year and a half of sideways movement. I could see them perking up here if the quality of the labor market improves. In addition the promise of lower cap gains tax and more money in consumer's hands to spend with is enticing to say the least.

FYI: A new paper claims that a lot of the gains reaped by the legendary managers over time were, in theory, available to anyone using a handful of buy-and-sell signals.
Regards,
Ted
http://www.investmentnews.com/article/20161207/FREE/161209941?template=printart

2 questions for Junkster if you don't mind.
BXFYX looks to be a pretty small fund (100mil). Do you worry about when you exit, you will get hammered with your exit price since it sounds like you have a fair amount invested?
Seems like you are in capital preservation mode but if you were trading today for max capital appreciation, what area of the market would you look for a trade?
Thanks!

Re BXFYX, the bank loan category has been the epitome of a tight rising channel since the February bottom. The size/assets of an open end fund isn't prone to the volatility of say an ETF where you can get hammered. To me getting hammered would be a 1% daily decline so not worried about that while this category is in a bull phase.
While I am in a capital preservation mode, my main focus this year has been to still try to beat the S&P (while trading bonds) and so far this year have accomplished that. However as the S&P is closing in on me have gone from 100% bank loan to 80% with the other 20% in junk corporates (IVHIX) I may increase that 20% if warranted. As to what I would be trading were I younger and more hungry I really can't answer that. Obviously small cap value has been the place to be but really haven't looked at any funds there. While I would never ever buy a groupthink fund recommended on this board or any other, I must say DSENX sure has performed well.
The equity optimism on 2017 has been a bit worried. Kind of reminiscent of all the optimism on this board regarding healthcare/biotech in 2015. But then I always worry.

The owner of Berwyn Funds (TriState Capital Holdings) loses a big client and bails on an acquisition.
Vanguard is replacing Chartwell Investment Partners as one of the subadvisors of Explorer and MidCap Growth.
Tristate Capital is also abandoning its plan to buy a fixed income team and about $4-billion in assets from Aberdeen Asset Management in Philadelphia.
Chartwell owner Tri-State Bank, based in Pittsburgh, recently bought the Berwyn Funds investment group, including BERIX and BERWX.
Reading the release, it seems that Tri-State is fixated on "growing revenue...and attracting meanful inflows," rather than its results.
http://www.businesswire.com/news/home/20161205005194/en/TriState-Capital-Updates-Chartwell-Investment-Partners-Business

Hi @catch22,
Yes, a good problem ... but, one I stay on top of and that I manage.
Taxation and medicare premiums are something that I can somewhat manage due to holding a sizeable cash position. With this, should unexpected expenses arise (and they do) from time-to-time then I draw on cash reserves rather than selling invested securities which often times trigger associated capital gains along with taking outsized withdrawals from my IRA which are also taxable. These things can sneak up on one quickly and pretty soon you wind up with a sizeable tax bill.
So, there is something good to be said about holding a reasonable amount of cash in retirement and also doing some strategy based selling along with taking planned IRA withdrawals.
Skeet

2 questions for Junkster if you don't mind.
BXFYX looks to be a pretty small fund (100mil). Do you worry about when you exit, you will get hammered with your exit price since it sounds like you have a fair amount invested?
Seems like you are in capital preservation mode but if you were trading today for max capital appreciation, what area of the market would you look for a trade?
Thanks!