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Happy New Year! Past Performance Does not Predict Future Results.

When the calendar year turns, investors invariably look to the previous year’s marketperformance for direction on where to invest. While the instinct is often to add to winning sectors and cut losses elsewhere, chasing performance in this manner can land investors in trouble.


Indeed, according to Goldman Sachs, in 17 of the last 25 years, the stocks that lagged the S&P500 ended up becoming the leaders in the following year.

Winning and losing sectors again traded places in 2015 and 2016. As revealed in the adjacent charts, Aggressive growth style mutual funds which led the market in 2015 – brought up the rear in 2016. On the flipside, value-style funds, many of which focus on stocks tied to the economy, rebounded strongly in 2016.

What will 2017 bring? If 2016 is any guide, plenty of surprises – and hence the need for portfolios to stay diversified. For a full discussion of our outlook, please reference our forthcoming Quarterly Market Report.


Source: Bloomberg, Hefren-Tillotson. Data as of 11/20/2016. PAST PERFORMANCE DOES NOT PREDICT FUTURE RESULTS


ADDITIONAL INFORMATION ON THE SECURITIES MENTIONED IN THIS REPORT IS AVAILABLE UPON REQUEST – This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the Firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned. Hefren-Tillotson, Inc. and/or its officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein. Upon request, Hefren-Tillotson will be pleased to disclose specific information on such positions or transactions. Consider the investment objectives, risks, and charges and expenses of the fund before investing. The fund prospectus and, if available, summary prospectus contain this and other information about the fund. The prospectus and, if available, summary prospectus information may be obtained through your Hefren-Tillotson financial advisor. The prospectus and, if available, the summary prospectus should be read carefully before investing. Investment return and principal value will fluctuate. An investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. PAST PERFORMANCE DOES NOT GUARENTEE FUTURE RESULTS

Investment Advisory Team

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