In the era of 24/7/365 news and opinion, calibrating an acceptable response to the latest “breaking news” has become increasingly difficult. Long-term, disciplined investors must understand the ebbs and flows of the news cycle and attempt to formulate their investment decisions appropriately. While there are many possible paths the economy could take in 2018 and beyond, the challenge for investors is determining which is the most probable. Understandably, investors are most sensitive to anything that could disrupt the current global economic expansion. One edge of Damocles’ sword is an unfamiliar Federal Reserve that might tap the brakes via an unanticipated interest rate hike. The other edge is a trade war with the “manufacturer for the world,” and largest public owner of US debt, China. Fortunately, the steady hand on the sword for this recovery is the earnings story, both within the US and abroad. Broad-based business momentum is evident in all corners of the globe as sales growth that began accelerating in 2016 has continued to pick up pace throughout the current quarter. Upward revisions to expectations for both earnings and sales are very rare and generally reserved for recovery periods after a recession. Real S&P 500 aggregate earnings are now expected to increase by almost 20% in 2018, giving us legitimate hope for the foreseeable future.
During the first quarter of 2018, the Saratoga Large Cap Growth Portfolio posted a slightly positive return, though performance suffered from underweights in Netflix and Amazon. A number of the Portfolio’s long-term holdings exceeded expectations, helping performance. mation 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. 4/18 © Saratoga Capital Management, LLC; All Rights Reserved.