As a prelude to this review, we revisit a theme that has long informed our research: cognitive limitations in investment analysis. Reasonable minds may differ on what is or is not a good investment, but exceedingly few of those minds study or are even aware of the many ways our brains deal — automatically and without our conscious permission — with an excess of data (which certainly defines the securities markets). The shortcuts we unknowingly take amidst this onslaught of information can lead to the most unfortunate conclusions.
Herein, some of our strategies for wading through the facts to address some client questions we received about inflation, U.S. debt levels, and the potential for continued corporate earnings growth. And a couple of new positions, CACI International and Science Applications International, that we believe add functional diversification to our portfolios.