Griffin Financial Advisors, LLC

Memorial Day as we know it is a time to honor the men and women who died while serving in the US Military. But did you know early observance of Memorial Day was called Decoration Day? Dating back as early as the civil war, it was a day to visit the cemeteries to decorate the graves of the comrades whose lives were claimed in battle. Later, it evolved to commemorate all military personnel after the US found itself in its second major conflict, World War I. Regardless, spend some time this weekend celebrating your favorite Memorial Day traditions, but also take some time to remember our military members who made the ultimate sacrifice for our country. Be sure to attend a parade this weekend, a war memorial, or visit a cemetery. Recently, we were near the Chicago Riverwalk and had a chance to visit the new Vietnam Veterans Memorial Plaza, as you can see from the picture. Everyone have a great Memorial Day Weekend!

Recently, the Russell 2000 (RUT) index reached an all-time high. The Russell 2000 is comprised of small U.S companies. Although this small cap sector lagged large multinational companies last year, it is now breaking out into uncharted territory. So what is causing this? Last year, investors believed multinational companies would benefit more from the pickup in the global economy. Now, those same companies are at risk because of the potential of trade disputes, mostly with China. Although, we do not think a full-blown trade war will occur, negotiations are currently taking place. Therefore, investors may have concerns and are looking for other areas to invest. Investors may be moving money into small cap companies because their business has less global risk.   According to a recent research note from Bank of America Merrill Lynch, the S&P 500 gets 30% of its revenue from business overseas compared to 21% for the Russell 2000. Hypothetically, earnings for s...