In recent years, the stock market has embraced an unabashedly optimistic and downright speculative attitude. While exciting, more recent returns and individual stock valuations are untenable and portend other frailties embedded in this market rally. Specifically, lofty growth expectations, an underappreciation of risk, and a historically low market yield underscore the need for caution.

At Washington Crossing Advisors, we invest equity portfolios using a strict Quality discipline; focusing on companies with low debt, profitable assets, and predictable cash flows. We believe that holding an allocation in High Quality stocks can serve as ballast to an overall portfolio, especially when market enthusiasm dissipates and a re-pricing of risk takes its place. This equity market series further examines the above market fragility and how owning a Quality portfolio with less volatility has delivered sturdy income and risk-adjusted growth over the long run.