Overall, equities have broken the up channel formed since the Christmas Eve bottom. Now we should expect a rally back up to those broken channel lines and then we can see what’s next: Back down for a probe lower to build a better base or back into the up channel and off to new highs. I still believe we see over 3000 on S&P 500 before year end but it’s certainly possible we see lower first. The market doesn’t really care what I think anyway. We are holding a little cash for the next few VOL spasms we are sure to have. The brands portfolio is clustered in sustainable growers across important consumer spending categories and in brands we feel have significant competitive advantages over peers. If the macro and micro fundamentals continue to deteriorate, it will likely warrant more cash and defensive allocations to stable predictable brands vs high beta growth brands.

Remember: Volatility doesn’t always feel good but it’s absolutely the friend of the long term investor and those who do significant research to find the most relevant and innovative brands serving the $30+ trillion in global consumer spending.