Through the end of last week, our firm’s anticipation of a 20 to 30% return in our portfolios in 2021 is intact. Year to date, OUR AVERAGE CLIENT ACCOUNT HAS APPRECIATED 14.60%*, net of all cost, compared to the Dow Jones return of 13.51%, as of May 7, 2021!

However, as in any voyage, there will inevitably be short-term detours along the investment journey. Yesterday, for example, one of our holdings, Qualcomm Inc., declined 6.46% – in line with other tech stocks. This does not change our overall view of the company – or it’s likely very advantageous relative returns going forward.

Yesterday also saw a settling of 4.11% in our Marriott position. This was in response to a first-quarter earnings report, where Marriott’s adjusted earnings per share came in at 10 cents, surpassing analysts’ consensus estimates of three cents! This was a huge earnings beat! What appeared to cause yesterday’s price decline was that Marriott’s quarterly revenues of $2.316 billion missed analysts’ consensus estimates of $2.498 billion. In the same earnings report, Marriott stressed the improving demand for their rooms as our economy continues to reopen. In other words, revenues are improving quickly!

We believe Qualcomm and Marriott are extremely well-positioned to thrive in the market ahead, and poised to continue high relative returns. In our strongly held view, these short-term market declines provide our clients an excellent opportunity to add to their holdings!

Overall, we believe our nation’s economy is poised for huge upside movements. This is directly related to the over-stimulus of our economy, by both the Federal Reserve and the fiscal policy pursued by the current presidential administration. It is our strong belief that the policies being pursued by the Biden administration, like those of former President Obama, will actually widen the wealth and income gap between the wealthy and the less fortunate in our country. In other words, these policies will likely result in the rich getting richer while the poor get poorer!

We will piggyback on increasingly predictable political (not market or economy driven) policy pronouncements, and attempt to put your money in front of macroeconomic, and political, decisions that give your portfolio the best opportunity to gain from predicted and likely market movements.

Our bottom line? Buy on weakness in this market! We believe you’ll be very happy you did!

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