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July 1, 2018

Dear Client:   Returns for the major stock indices for the first half of 2018 and the current bond market yields are as follows:   Index YTD 2018 Dow Jones Industrial Average -1.81% S&P 500 +1.67%   Fixed Income Yields 1 year 5 year 10 year 30 year Municipals 1.47% 2.00% 2.47% 3.00% US Treasuries 2.31% 2.74% 2.86% 2.99%   The first half of 2018 has been fairly uneventful for the overall stock market.  The markets peaked on January 26th, then had a quick 10+ percent decline.  Now we have clawed our way back, but the Dow and S&P 500 are still off their all-time highs by 8 percent and 5 percent, respectively.  There have, however, been some bright spots in the market; small-capitalization stocks have performed well, as have some of the large Nasdaq/FAANG names we mentioned in our first quarter letter.  Despite some strong performances, the overall market has been boring year-to-date; or more plainly said, ordinary.  The markets’ performance in 2018 have not been particularly interesting, but investing is not supposed to be entertainment.  REAL investing is not a game; it is mundane, routine and long.  Successful long-term investing is a lethargic combination of discipline, grit, grind and humility.  Long-term investing can be studied, but in reality can take lots of time, introspection and experience to accept as a discipline. When I began at LYNCH & Associates 23 years ago, I was as green as could be but excited for the future and eager to learn everything about investing.  I was determined to prove to myself, my family and the clients of LYNCH & Associates that...