Karp Capital Management Financial Focus

2nd Quarter Report

Positioning Your Financial World in the Global Economy
July, 2017

Life is Good

How High Can the DOW Go?Political headlines dominated the news during the first half of 2017, casting shade on global economic data. Reflation trade (fiscal policy meant to expand domestic output) caused growth assets to outperform relative to fixed income, despite June’s bond rally. In the U.S. there is a recovery in business spending, as evidenced by the jump in factory orders and capital spending projects. Consumer confidence is also soaring. If history is a guide, this will translate into stronger consumption growth in the months ahead. U.S. inflation at the wholesale level fell for the first time in seven months, owing to lower costs for services as well as cheaper fuel for cars and homes. Earnings growth is finally gaining momentum with market consensus estimates of growth at +10.9% in 2017 and +12.1% in 2018. We believe that strong earnings continue to provide support for rising stock prices. The stock market has not lost much ground despite the political bottleneck in congress.

In This Issue:

Life is Good

Market Performance

En Marche!

Take Out or Delivery

Play the Long Game

Building on Growth

Fed Up with the Fed?

Tulips or Bitcoin

Fiduciaries Rule!

Client Spotlight – Hank Levy

Do Those Things You Want To Do

Oil’s Summer Break

Cool for the Summer

Karp Capital Conference Call

_________________

Contact Peter

Forward to a Friend

The Federal Reserve performed its annual Comprehensive Capital Analysis and Review (CCAR), also known as the bank stress test. For the first time since the financial crisis, all 34 of the largest U.S. banks passed the examination; one test, a “severely adverse” scenario, featured a global recession with U.S. unemployment rates jumping to 10% and distressed commercial real estate market conditions. The positive results evidence the improved condition of the country’s largest banks. This significant progress raises the possibility that the Fed may relax some of its capital rules; the upshot would be increased lending activity, especially to potential borrowers that had been neglected due to strict capital requirements. Already, many banks raised their dividends as they have more than enough cash reserves leading stock prices in the sector to rise even more this year.

Over the last couple of years, we have written about the oil markets and how there is simply too much supply in the U.S. and abroad. Low interest rates and technological advances have made getting the black gold out of the ground very cost effective. This has helped the consumer get back on their feet by paying down debt and feeling confident about making big ticket purchases. While consumer confidence remains high, markets are beginning to express doubt in Trump’s ability to streamline corporate tax and implement regulatory reform. The Senate’s draft version of an Obamacare repeal and replacement healthcare bill dominated headlines and ultimately was unable to pull votes together to hit the original target date. Doubt is now cast on passing larger reforms to healthcare or the tax code.

From the all-time highs in mid-May, blue chip stocks are taking a needed break from a red-hot run, while the U.S. dollar has contracted more than 3 percent since late December. Tax relief would be a major win for small and mid-cap firms especially and encourage large multinational companies to repatriate foreign cash. According to one recent estimate, the top 50 largest American corporations stashed as much as $1.6 trillion overseas in 2015. It’s time we give them an incentive to bring some of that cash back home. In this issue of the Karp Capital Focus we will build the case for continued U.S. stock gains as economic numbers improve domestically and globally. We will also look at how certain sectors are poised to further build on current growth.



Market Performance

Here are the performance numbers for the major indices as of 6/30/2017:

June
2017

Latest
3 Months
2017
% Change

The
Close

Dow Jones Industrials
1.62%
3.32%
8.03%
21,349.63
Standard & Poor’s 500
0.48%
2.57%
8.24%
2,423.41
NASDAQ Composite
-0.94%
3.87%
14.07%
6,140.42
Russell 2000
3.30%
2.12%
4.29%
1,415.36
MSCI EAFE
-0.36%
5.03%
11.83%
1,883.19
Long Term Treasury Bonds
0.38%
3.98%
5.47%
Gold
-1.89%
-0.21%
8.41%

U.S. equities had their best start since 2013 as stocks outperformed most other assets. Tech (+17.2%), Health Care (+16.1%) and Consumer Discretionary (+11.0%) were the best performing sectors in the first half of the year. Tech, a particularly crowded sector, contributed 38% of the S&P500’s gain. The top 10 stock contributors comprised 37% of the S&P500’s. In Q2, Telecom (-7.1%) and Energy (-6.4%) were the worst-performing sectors, while Health Care (+7.1%) and Industrials (+4.7%) finished on top. Long-term Treasuries (+5.47%) outperformed corporate bonds (+3.9%), while commodities had a mixed performance, with Gold +8.4% and Oil -14.3%. Outside the U.S., international equity markets were the star performer relative to the U.S. as emerging market equities returned 6.4% in Q2, bringing YTD returns to 18.6%. In the U.S., investors questioned the path of Fed rate hikes given weaker than expected inflation data, leading 10-year rates to fall to 2.15% and the Barclays Agg. to return 1.4% over Q2. We still favor Growth over Value stocks. Historically, in an environment where the business cycle was healthy but growth opportunities were becoming scarce and forward earnings expectations starting to fade investors typically seek shelter and paid increasing premiums for Growth stocks.
Sources: Thomson Reuters; WSJ Market Data Group, Dow Jones & Co., BTN Research, BofA ML, Ned Davis Research, J.P. Morgan. Stock market indices do not include reinvested dividends.




En Marche!

Since the financial crisis, Europe has had a tenuous relationship with economic growth, from no growth to slow growth, peppered with a debt crisis for a few EU countries. The continent’s path towards expansion has been quite the rocky one. Europe is on much better footing this year than it has been in quite some time. The story of 2016 was how the European Central Bank (ECB) was stimulating the economy with extreme measures by driving interest rates down to historic lows. Now, a region that was once pulled down from events like Italy’s debt crisis in 2011 has debt servicing rates well below the United States. For perspective, at one time Italy’s 10-year rates were well above 6%, triggering the crisis and sending Europe into panic. Now, that rate is less than 2% with much better prospects for growth. In the past, the most important precursor to growth has been when real GDP growth clearly exceeded inflation. With the dollar still depreciating and Europe and Emerging Markets Purchasing Manager Index still firm, our theme of international revenues boosting S&P 500 earnings remains intact for Q3. Since over 40% of S&P 500 revenues come from overseas, the meaningful change in foreign sales should boost the bottom lines of the technology and industrial sectors. While the U.S. is in the later stage of economic growth, Europe is just getting started. While there is more work to be done in intra-European relations, especially as it relates to negotiation of the UK’s departure from the EU (Brexit), recent events have shown that the major continental members share a strong commitment to cooperation. France avoided electing a polarizing president and elected a more moderate centrist with an affinity for international relations, not isolationism. We expect things to continue to improve in the region and have been increasing our allocation not only to Europe but to specific countries like Germany. European stocks, as measured by the MSCI Europe Index, look very attractive compared to U.S. stocks. This should be especially enticing for investors who believe U.S. stocks are too expensive right now. Overall, we believe diversifying exposure to international markets in addition to the U.S. will help boost performance.

Take Out or Delivery

Amazon Buys Whole FoodsSavings in energy help fuel spending in other sectors of the economy. Coupled with rising wages from full employment, the result is that many consumers have more income to spend. Maybe that’s why Alexa told Jeff Bezos that Amazon’s acquisition of a brick-and-mortar grocery store like Whole Foods was a good idea. Amazon’s increasing market share into all things consumer is not being missed by anyone. As the online retailer continues to grow, its rising stock has played a part in driving the major indices higher and aiding in the market’s recent all-time highs. Companies with the largest market caps have the greatest influence on the moves of the Dow and S&P 500. If just a few of the largest cap companies outperform, the market tends to grind higher. As Amazon continues to grow and consolidate its share of consumer spending, it will continue to help drive the market higher, regardless of the performance of other companies in the retail space. With this new acquisition, it gives us a lot to digest when thinking about major market and industry trends in our continually shifting economy. Shopping on the internet has become ubiquitous. Many people shop for clothes and home goods online, with Amazon being their go-to destination for discretionary goods. Yet that market hasn’t satisfied the e-retailers hunger to expand its piece of the pie. In certain cities, Amazon has already been a factor in the grocery business. Customers in major cities around the country can not only buy their groceries online and have them delivered straight to their door, they can often have those deliveries made same day. With an existing grocery infrastructure in place, it’s important to consider why Amazon would not only acquire a brick-and-mortar grocer, but one generally known for higher than average prices and a niche clientele. As we mentioned in our last newsletter, Amazon had already set its sights on opening physical grocery stores with an infusion of technology. Maybe the king of logistics has determined that it can bring the costs down with a more efficient infrastructure and touch of tech. Much to the chagrin of other retailers like Barnes and Noble and department stores, Amazon determined that eschewing a physical presence wasn’t the best way to dominate this specific market. A recent report from Credit Suisse estimates 20 to 25 percent of American malls will close within the next five years. Credit Suisse estimates that a record 8,600 stores will close this year alone. That’s far more than the record 6,200 stores that closed in 2008, the first year of the Great Recession. Perhaps Amazon will buck that trend. We remain bullish on the consumer in general and we’re focusing our efforts to incorporate higher spending into portfolios through consumer discretionary ETFs and select stocks.

Play the Long Game

With a 24-hour news cycle and what’s becoming more and more of an endless campaign season, politics have distorted many investors’ views on the markets and the economy at large. Depending on your leaning, before the election, the economy was either experiencing one of the longest expansionary periods in history or growing at a rate too slow to consider positive. Then, with a change in leadership, the poles shifted and sentiment inverted. A lot of what was considered the “Trump Trade” hasn’t fully manifested as he hasn’t done much to move the markets. There’s hope from many, but not much has come to fruition. But what has really changed with regard to the economy? Overall economic data is positive and international markets are starting to see the same upward trends that the U.S. has been experiencing for years. Growth, albeit slow, is permeating the global markets and there’s plenty of reason to be positive, regardless of your political affiliation. Unemployment has been trending down for years, reaching levels that are generally considered to be full employment. It did, however, take until very recently for real wages to turn higher and start closing the gap given the tight labor market. This is something to which the Fed is paying very close attention as wage growth is strongly correlated to inflation. The labor market was strong enough to handle an interest rate hike without hindering growth to a meaningful extent. The last few rate hikes had been anticipated for years as fundamentals have been strong for quite some time.

Some improving data span decades, transcend many administrations, and should bolster confidence in general. News is often negative and it can weigh on our decision- making process, but taking a step back and looking at the big picture can keep you centered not only emotionally, but financially as well. There is a significantly smaller percentage of the world’s population living in poverty and fewer people are dying from preventable and curable diseases. These trends have implications that go beyond the quality of life for those directly involved. With more people thriving around the globe there are investment opportunities with more potential growth than what you can find domestically. We’ve increased our exposure to emerging markets to take advantage of this growth potential.

New technology continues to spur innovation and market growth as well. Moore’s Law can also be a beacon of optimism for long-term growth. It’s the observation that certain technologies are improving at an exponential pace. While this has brought challenges, especially to labor markets, it implies that the technology industry has the potential to continue its transformation of the global economy for the foreseeable future. The future is global and the tech sector has the ability to further expand its market share relative to other sectors. We remain bullish on the technology sector even as the top names continue to reach new highs.

Building on Growth

Starter HomeThe Commerce Department reported new home sales ran at a seasonally adjusted annual rate of 610,000 in May. That’s 8.9% higher than a year ago, yet it isn’t nearly enough to keep up with demand. Recent monthly volatility has been driven in part by a lack of inventory, which has fallen to just 5 months of available supply. Keep in mind, sales are still running at levels that have only been better in the boom years of 2004/05. We do not view this as a sign of a weakening market. Instead the buying pressure is leading to steady price appreciation in most of the country. Home prices continue to climb as the improving job market and growing families continue to escalate demand. According the National Association of Home Builders (NAHB) there is a serious shortage of workers, a problem that ripples throughout the whole homebuilding-process. The challenge of hiring stems from skilled workers that left the industry during the housing crisis and have found other occupations. If the industry could find trained staff it could not only dramatically help housing affordability across the country but also build on current levels of sustained economic growth. Building 100 single-family homes in a typical metro area creates 297 full-time jobs and generates $28 million in wage and business income and $11.1 million in federal, state and local tax revenue. The sector currently accounts for 15.6 percent of U.S. gross national product (GNP). As we pointed out during our last conference call, we have been touting the XHB (home building ETF) and selected stocks in the sector for the last 12 months as housing has a strong multiplier effect on the economy. The fundamentals of the housing market remain intact, with falling mortgage rates, strong employment, and strong consumer and homebuilder optimism.

Fed Up with the Fed?

With so much market news focused on the Federal Reserve over the past few years, we know many people are just simply tired of hearing about the central bank. By now you’re most likely aware that we’ve experienced a few interest rate hikes and rates are slowly drifting further away from zero. Now it’s time to shift focus on the Fed’s actions to keep the economy growing and towards what rising interest rates mean for you not just on an investment basis, but how it affects different areas of your life. With higher federal short term interest rates, banks will not only increase the rates charged on money lent but they’re also incentivized to increase the rate at which they lend money. At higher rates and greater margins, banks can profitably increase the amounts that they lend to small businesses and consumers. The more that banks can competitively charge for loans, the more they want to increase lending to increase profit. If you’ve struggled to secure financing in the past, it may be time to consider it again. As rates trend higher it’s important to lock in financing at these still near-historic lows. If you could secure a mortgage at a low rate, it may be time to consider establishing a Home Equity Line of Credit (HELOC). Even if you don’t need to draw and access the credit line established, it’s good to have in case of emergencies or eventual home repairs. Most credit lines are on adjustable rate schedules so they will increase as rates rise but it’s always better when you start with the lowest base rate possible. Have you thought about how your mortgage fits in with the rest of your financial life? Please contact us if you want to discuss refinancing or open a line of credit.

Similarly, if you are considering upgrading your car, now is the time to get behind a new set of wheels. There are numerous financing programs that could affect your long-term goals… positively and negatively. While Karp Capital can’t help you decide what car to buy, we can point you to someone who can. Owning and financing vehicles are part of your overall financial picture and as your financial advisor you should lean on us as a resource to determine if and how you should finance the purchase. The market’s fixation on the Federal Reserve extends far beyond the effects its decisions have on your investment portfolio. They affect your lives in very real ways and keeping up-to-date on the direction of rates can save you real money. It is not only securing financing; it is securing the right financing given your overall financial goals. Don’t waste money on interest when you can spend it on what interests you.

Tulips or Bitcoin

Bitten CoinAn emerging form of digital currency has received tremendous media coverage this past month, Bitcoin, which is essentially virtual money that is traded digitally by exchanges. Bitcoins can only be purchased and sold with legitimate currency, such as dollars or euros, making it available worldwide. The total estimated value of Bitcoins worldwide as of May 30, 2017, is over 36 billion dollars. Bitcoins exist as software, not physical currency, and are not regulated by any country or banking authority. Even though U.S. Senate hearings disclosed that Bitcoin could be a means of exchange, it gave no assurance that it would become an accepted medium of exchange. Government regulations would need to be created and then enforced for Bitcoin to become accepted by other government entities. The currency can be traded without being tracked, thus raising the potential for its use in illicit activity, such as weapons and drugs. Since the beginning of 2017, the total market value of Bitcoins has risen over 20 billion dollars, more than doubling since January 1, 2017. Some believe that the price appreciation of Bitcoin has been a result of speculation since it hasn’t been used as a store of value or as a medium of exchange to any extent. Some compare Bitcoin to the tulip craze in Holland of 1637, when speculators pushed the price of tulip bulbs to incredible levels, followed by a collapse in the market, the first great asset bubble. Bitcoin has surged on speculation that perhaps one day digital money will eventually become a legitimate global currency and even replace some foreign currencies. Towards the end of the quarter Bitcoin did suffer a pullback perhaps from a sort of flash-crash, sending the value to almost worthless before regaining most of what was lost. While it’s interesting and exciting to see the price of an alternative investment like this skyrocket, it’s important to keep in mind there’s no real backing or guarantee of its worth. Speculate with caution.

Fiduciaries Rule!

The first stage of the Department of Labor’s new fiduciary regulations quietly went into effect on June 9th. The regulations impact IRAs, 401(k), 403(b), Defined Benefit, and Cash Balance Plans. We would like to briefly address the following three questions to help our clients better understand the rules and terminology: What is a fiduciary? Is Karp Capital a fiduciary? What does this mean for your accounts? In finance terms a fiduciary is defined through the Prudent Person Principle which states: A fiduciary must discharge his or her duties with the care, skill, prudence and diligence that a prudent person acting in a like capacity would use in the conduct of an enterprise of like character and aims. In simplified terms, it requires the investment manager to manage other’s money using the same, or similar processes as he or she would manage his or her own; furthermore, a fiduciary must always act in the sole interest of his/her clients. It would seem natural to conclude that all financial advisors would act in this manner, however, previous regulations only required brokers and insurance agents to act in a “suitability” capacity. The suitability standard does not require brokers and insurance agents to put their clients’ interests first. As a registered investment advisor, Karp Capital Management has been and will continue to be a fiduciary for both our asset management and retirement plan clients. We are held to the Prudent Person Principle and will continue to place our clients’ interests first. If you, or your firm is working with a broker, or insurance agent, please request that they put in writing that they are willing and able to be a fiduciary. If they cannot, run for the hills!

Client Spotlight – Hank Levy

Hank LevySometimes, Hank Levy feels he is living in his fifth career since becoming an adult. From factory worker to auto mechanic to labor studies instructor to certified public accountant and now, he thinks, his final career, the new Alameda County Treasurer-Tax Collector. As a CPA, Hank built his firm from his study in his North Oakland home to a six-office, 32-person firm over a period of 25 years. Hank’s most satisfying experiences have been in helping clients get through marital divorces as a forensic and tax expert, although he admits sometimes it hasn’t been easy or cheap for them! Hank has also been an expert on the accounting and taxation of cannabis businesses and has had the unfortunate experience of becoming an expert on one of the most illogical and punitive sections of U.S. tax law, Internal Revenue Code Section 280E, which disallows deductions for any business which “trafficks” a controlled substance (such as cannabis). Most people know the duties of the Tax Collector-Treasurer is to collect property taxes (Hank is replacing Donald White, who had the job for over 30 years); however, Hank also wears other hats: As the county’s banker, his office oversees the county’s treasury of $6 billion. Hank is also the main fiduciary on the county’s voluntary deferred compensation plan, which has over 4,000 participants and over $750 million in assets. Finally, Hank is one of 9 trustees on the county’s defined-benefit pension plan for its employees. Because of his varied activities, there is no such thing as a typical day. His main struggle is to figure out which organization and conference to go to! Hank thanks his wife, Marcia, and his family for putting up with him.

Do Those Things You Want To Do

On the political front, for many people the probability of the unexpected seems higher now than it was with the previous administration. So, it doesn’t seem out of the question that President Trump might inadvertently do something that will scare investors. How will the decisions that are made affect the ability of U.S. and international companies to continue to earn profits, and how will these decisions impact our domestic economy? We believe if the markets do take a dip it may cause you a bit of anxiety. Now is a better time to trim your exposure to stocks and revisit your asset allocation. You never want to make dramatic moves, in either direction, when you’re fearful or under stress. The basis for having a productive conversation is to remove the intense emotions from your investment decisions. If you feel uneasy about the markets or your financial goals, we need to discuss changing your asset allocation but not make big shifts which could derail reaching your investment goals. There needs to be a balance between asset allocation, sector investing and your cash flow needs. There is a near term risk of underperformance in the name of reducing volatility and principle protection. When individual investors engage in market timing there’s a risk of getting out too late and the question of when to reinvest monies. If you think something will rattle the markets, scaling back on your equity holdings would make sense considering your investment timeline and financial goals. Let us know your life goals and aspirations. We encourage you to do those things you want to do. Is there a place you haven't been and you want to visit? Is there an activity or event you want to experience? Are there family and friends you want to see again that live far away? Often we hear from clients that they waited too long to experience some of life’s blessings. People wish they could have or would have done something that they later regret in life. Sometimes it's too late to do anything about it, but many times there is no better time than the present.

Oil’s Summer Break

Oil PricesThis summer, gas prices nationally have been at multi-year lows. According to AAA, the national average price per gallon is less than $2.50 and in June alone, the average price was down over 3%. Gas prices haven’t been down on a year-to-date basis midway through the year since 2005. So far this year, prices are down nearly 2%.

Brent crude oil, the international benchmark, has retreated more than 15% since OPEC’s agreement in May to extend production cuts. Investors are concerned by increased output from Nigeria and Libya and a growing number of active drilling rigs in the U.S. Also, Iran’s oil minister stated that OPEC is contemplating deeper cuts to reduce the global inventory overhang. The current economics of shale oil point to a break-even price range of $40 to $60 per barrel; and, in contrast to prior years, most shale producers have not locked in higher prices for their production. Thus, as oil prices are near the low end of the break-even range, we anticipate that shale oil companies will respond by curtailing activity until prices recover. Oil prices provide the signal that producers and consumers need for decision-making. Economies all over the world have become accustomed to the glut reflected in oil prices and governments have adjusted to the deflationary force of falling prices. Across a variety of commodities and asset classes prices have stabilized or even started inflating due to relative scarcity from higher demand. It has been a few years since oil started its downward trend and the global consensus has been that this will likely continue. Anticipating higher energy prices hasn’t yielded any significant returns so we’ve remained largely on the sidelines in the energy sector.

Cool for the Summer

Summer… when the air is warm, the kids are out of school, and pool parties are the weekend event. Every August, the collector car world travels to the Monterey Peninsula to see the magnificent roster of best-in-class and stunning rare automobiles. The opportunity to talk to collectors and car fans from all over the world is unparalleled. This special automotive week is full of exciting events, auto shows, rallies, and car auctions that end on Sunday at the Pebble Beach Concourse d'Elegance. There are over 18 events during the week that shape and define the collector car market. Economic trends and political instability affects markets, and classic cars are not exempt. Additionally, classic car values may be a predictor for financial markets at large. Each type of car and the various price points tell a story about the economic health of the collectors and regions here and abroad. All world class auctions are priced in U.S. and Canadian dollars, euros and yen. This indicates a global market where collectibles are deemed a separate asset class in an investor’s portfolio.  As you sample the fabulous street cuisine you can feel the buzz around various makes and models of cars. The Hagerty Collector Car Indices combine the average value of the most popular collectible vehicles within their category from 1950s American Muscle Cars to Ferraris. These indices are widely followed and many of these indices started to drop preceding the 2008 stock market crash by a few months. Currently at the June 2017 level, most of these indices are flat after a steep climb from 2013 to Jan 2017. Much of the value shed recently has come from the top of the market: cars worth more than $250,000, while mid-priced cars under $100,000 have been holding up. Two questions will come to mind while cruising down the streets of Carmel and Monterey: can downward trending prices predict a downturn for global markets? And second, will added pressure, due to political uncertainty in the world’s largest economies, force commodities (cars) to price up or down and how does that translate to investable market themes? For instance, we’ve seen many buyers at the upper levels changing their focus, looking for cars that represent less risk. This also helps buoy and even bolster prices for sub-$100K cars. While the classic car market recovered as a whole after the great recession of 2008, some cars appreciated to unseen levels (Porsche 911s, for instance), and others have yet to return to their 2008 price (e.g. Chevrolet Chevelle LS6 convertibles). Monday morning quarterbacking is easy but can be costly in any collectible market. The most important thing to remember is that if you love a car or piece of art, it doesn’t matter what it’s worth. Take the family to Monterey and stroll down memory lane and enjoy the scene.

Karp Capital Conference Call

Karp Capital’s Financial Focus newsletter has had over 40 editions, each giving updated quarterly information and our insight into the markets. This year, we’re starting to increase the frequency with which we provide updates, as well as give you the opportunity to ask the questions that are most important to you; we’re introducing the Financial Focus Conference Call. Many of you have dialed into calls we’ve had in the past, now they’ll be held every quarter. Those who have registered for the call will receive an email reminder with the opportunity to ask any questions you’ve pondered since the release of the newsletter. We encourage you to participate and let us know what’s on your mind. Please note on your calendar Friday, August 25th at 11:00AM to call 515 739 1033 (access code 823682#). If you’re unable to attend at the scheduled time, a replay will be available on our website shortly after the call.

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All of us at Karp Capital Management thank you for your continued support. It is a privilege to help you, your family and friends reach financial goals. Please remember that we appreciate your support and we’re flattered when you refer your family and friends. If you know someone that would enjoy our commentary on the market, please share the newsletter with them. If they would like to receive our quarterly commentary please direct them to sign up for the email edition at karpcapital.com/news.

If you have any questions on the analysis above, or would like to review your portfolio’s performance, please call us at 877 900 Karp. We wish you happiness, good health and prosperity in the New Year!

Peter Karp
Peter C. Karp

Karp Capital Management Corporation
Registered Investment Advisor

Mailing Address: 2269 Chestnut St., #308
San Francisco, CA 94123

Office Address: 221 Caledonia St.
Sausalito, CA 94965

P: (415) 345-8185 F:(415) 869-2832
peter@karpcapital.com
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If you no longer wish to receive the Karp Capital Management Financial Focus newsletter, please contact us to be removed from our mailing list. Although information in this document has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness, and it should not be relied upon as such. All opinions and estimates herein, including forecast returns, reflect our judgment on the date of this report and are subject to change without notice. Such options and estimates, including forecast returns, involve a number of assumptions that may not prove valid. Further, investments in international markets can be affected by a host of factors, including political or social conditions, diplomatic relations, limitations or removal of funds or assets, or imposition of (or change in) exchange control or tax regulation in such markets. The past performance of securities or other investments does not necessarily indicate or predict future performance, and the value of investments. This document may not be reproduced without our written consent. Securities offered through Infinity Financial Services, member FINRA/SIPC. Karp Capital Management is not an affiliate of Infinity Financial Services.