MARKET VOLATILITY GAME PLAN

We have recently expressed concerns over the current market volatility and the impact of global macro issues such as the Greek debt crisis, Puerto Rico’s stated Inability to meet debt payments and the China A-Share Market Correction. To this end, we have recommended to our clients that they reduce Core Equity and select Fixed Income Holdings and to: (1) rotate to areas in the market that are uncorrelated to the equities markets, and (2) increase exposure to areas of the market that offer opportunity and growth through individual stock selection and/or portfolio management. The following is a brief summary of our views of various market sectors: Large Cap Domestic Equities (S&P Stocks) - Overvalued and setting the stage for a sell-off and pullback. Alternative Assets (ALTS) - Have become a popular buzz word for non-listed REITs, private equity commodities, Mid-Market Lending companies (BDC’s), etc. Generally all come with high commissions to brokers and are showing themselves to be positively correlated to the equities markets despite not having a daily valuation mechanism to actually show the extent of their losses. Thus, we suggest steering clear for the time being. Bonds - Investors are experiencing losses for the first time in thirty years in a trend that we believe is just beginning. Recent positive new on the U.S. economy and the Fed’s suggestion that rate hikes are imminent have led to a spike in the 10-year treasury to 2.44%. Rising rates have an inverse effect on bond prices and diminish their market value. Factors such as Puerto Rico’s stated inability to meet its obligation have also negatively impacted the market. Illiquid secondary markets have made investors realize that the value of the bonds carried on their brokerage statements are overstated relative to the amount they receive in a sale. Thus, other than for investors who need the income, we suggest being on the bond sidelines waiting for the implosion that will ultimately occur, at which time bonds will be available at discounts. Bond Surrogates - (REITs, MLP’s, Utilities, etc.) have sold off, driven by concerns over impending interest rate increases. More value pressure is to come. Dividend Paying Stocks - Have been getting caught in the bond surrogate trade. Companies that pay high dividends will feel the pressure of the interest rate sensitive trade, but those companies with the ability to grow dividends will thrive. Stock selection and understanding dividend growth drivers is essential. European Equities - Europe multi-national companies have outperformed and will continue to do so while aided by the ECB’s stimulative actions and the weak Euro providing an advantage against U.S. domiciled companies.

Small & Mid-Cap Growth Stocks - Offer value on a selective (company by company) basis. Buy companies not indices. Gold - behavior has been counter intuitive for the past 5 years. The Federal Reserve’s printing of money should be the perfect breeding ground for run-away inflation, yet this has not occurred. Real Estate - to say that real estate is not correlated to the equities and interest rate markets, one only needs to look at the performance of REITs in 2014, which have generated negative returns of 3% - 30% through 2015 so far.

Cash - a directional bet that is good if the markets sell off; however, if the market meanders or goes up return is sacrificed. Private Equity - In actuality, PE might be the most correlated of all asset groups since the end game is to sell up the food chain (little funds sell to bigger funds) until eventually an IPO. However, PE does not provide a daily mark-to-market, masking the true risks, and yet some people actually find this appealing under the view that what I can’t see won’t hurt me. Hedge Fund - Fund of Funds - The goal is to manage downside risk by assembling multiple Hedge Fund Strategies. However, by peeling back the wrapper you find that the funds are generally dominated by strategies that assume market risk which is why many of these saw the biggest declines in 2008. Some buffer is generally offered by an allocation to “True Hedge Funds” however, not enough so to achieve true market neutrality. Also, the sponsor who assembles the portfolio charges a fee on top of the management level fee which limits the return to investors to mediocrity. Market Neutral Portfolio - Environment is ideal for funds of this type with demonstrated managerial skill and a consistently low equity market risk exposure (beta < 0.10 or > -0.10). Emerging Markets - Smaller well run consumer companies are in the early stages of a long-term high growth cycle. Find a manager that selects well run local companies and avoids the large State Owned or State Influenced Enterprises (Petrobras, Yukos, etc.). The preceding represents the opinions of The Stanley-Laman Group, Ltd., a Registered Investment Advisor, and are not intended to be investment recommendations. All strategies outlined and the views expressed offer risk of loss of principal and are not suitable for all investors. Investors are advised to consult with qualified investment professionals relative to their individual circumstance and objectives.