Edgemoor Investment Advisors Q4 Investor Letter

Edgemoor Investment Advisors, a wealth management firm based in Bethesda, Maryland, recently published its Q4 investor letter – you can download a copy below.

“2017 was a year of records in the U.S. stock market, as the S&P 500 and other major indexes hit new highs throughout the year. The S&P 500 index returned 21.8%, including dividends, its best performance since 2013, and delivered a positive return in every month for the first time,” the firm said in the letter.

“Technology companies continued their strong run and were the best performers for the year, though the materials, consumer discretionary, financial services, healthcare, and industrial sectors also generated high returns. The dollar’s 7.5% drop in 2017 against a basket of foreign currencies helped U.S. exporters, whose goods became less expensive to foreign buyers. The price of oil jumped 12% during the year to $60 per barrel, the highest in 2 ½ years but still far below its $147 peak,” according to the letter.

Meanwhile, Edgemoor does not “currently see signs of a recession on the near horizon. However, if short-term interest rates rise to the point of being higher than long-term rates, odds of a recession would increase; this condition, known as an inverted yield curve, would indicate pessimism regarding the economic outlook. We do not expect to see an inverted yield curve anytime soon, and a recession does not follow each one, but we will be watching rates closely for any signals.”

In addition, the letter includes detailed analysis of the investor’s positions in Alphabet, Visa Inc., and Enbridge Inc.

Click here to download the copy of the letter.