During the second quarter of 2018, Financial stocks slightly trailed the broad market averages. The Saratoga Financial Services Portfolio benefited from favorable stock selection within Investment Banking & Brokerage. The primary source of underperformance were the Portfolio’s Insurance holdings. The worst performing group for the index was Reinsurers, though the Portfolio’s solid stock selection in this sub-sector meant smaller relative impact.
In our view, the US economy remains quite resilient, with consumer and business surveys the strongest they’ve been in years; in turn, the Federal Reserve has stuck to its plan to gradually raise rates toward a neutral policy. We believe that the economy is no longer in need of monetary stimulus and think a move toward neutral is appropriate. Improving business optimism and gradually rising interest rates should both prove positive backdrops for financial companies, especially banks.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 7/18 © Saratoga Capital Management, LLC; All Rights Reserved.