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Quarterly Investment Review Letter 2016 Q3

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Finally, eight years after the 2008 financial crisis, alternate fiscal policy under the veil of ‘monetary expansion’ or ‘quantitative expansion’  (otherwise known simply as printing more money) are pointing towards a comeback. The U.S. Federal Reserve alone has printed about $3.8 trillion since 2009. The dollar is worth a dollar because Central Banks say so, no other reason. This is the ultimate in belief confidence. The alternative is economic implosion … Let’s believe.

 “Fiscal policy is edging back into fashion, after years, if not decades, in purdah. The reason is simple: the incomplete recovery from the global crash of 2008. Europe is the worst off in this regard: its GDP has hardly grown in the last four years, and GDP per capita is still less than it was in 2007”. CBC News 24 Sep 2016

We were told by central bankers and liberal economists that quantitative easing was only a temporary measure, and that things would return to normal as soon as possible. What we have now, eight years later, is our ‘new mediocre’. Christine Lagarde the head of International Monetary Fund.

In spite of monetary concerns such as the unknown next steps for interest rates, employment rates, and rates of global growth, your portfolio performance remains consistent. The year-to-date returns for Monthly High Income fund is 5.6 percent; and for Strategic Dividend Bundle it is 10.3 percent.