While the gains were not as broad, equities continued their ascent during the 2nd quarter, and it has come without much of a fuss. According to the WSJ, “The S&P 500 hasn’t had a 5% dip since the post-Brexit vote drop, only the third time since the mid-1960s it has managed more than a year without such a pullback.” 1 While this has been an up year in equities, it has not been a pro-cyclical or risk-on up market; however, it is important to remember that this scenario has generally been the case for most of this cycle. Stocks that exhibit the more risk-averse factors such as quality, profitability, larger size, growth, and earnings stability have outperformed this year and during most of the 2nd quarter, the exact opposite of what defined the up-market of 2016. Year-to-date, this has been a favorable backdrop for our portfolio holdings, as we have fared well versus the benchmarks.