April 30, 2015

Dear Friends,
Changes in macro-economic activity can have a strong impact on your portfolios return. Consider
some of the developments that took place during the last few years.
In 2013 our economy was in the process of recovering from its 2011 and 2012 slowdown.
Corporate profits were starting to rise; long term interest rates were at a record low; and common
stock prices were beginning a sustained and widespread rise. Diversified large, mid, and small
cap investment portfolios increased by more than 30 percent during the year. International
securities, which lagged other sectors, rose approximately 8 percent.
The market then became more selective. In 2014 it began to experience a flight to quality. The
increased military and political pressures in the Middle East, Russia, and South America induced
people from all over the world to look for a safe place where they could invest their money. The
safety and security of the American market was compelling. The demand for real estate assets as
well as for large and mid-cap stock securities increased. As a result, the returns of securities in
these groups were in the 16 percent range while the returns of the less liquid small cap and
international portfolios turned negative.
The stronger dollar made American exports more expensive and imports more attractive, and the
profitability of exports began to decline. A sharp increase in the number of mergers and
acquisitions began to take place as many larger American firms intensified their search for new
areas into which they could commit their capital and acquired small cap and international firms.
During the first four months of 2015, many small cap and international portfolios generated
double digit returns. The returns of portfolios heavily concentrated in large companies fell behind.
In short, investors who held large cap stocks in 2013, reduced some of these holdings in 2014, and
then went on to increase their holdings of small cap and international stocks during the first four
months of 2015 realized generous returns. This makes a strong case for active portfolio
management, keeping abreast of macro-economic developments, and taking advantage of market
trends when they arise.

500 Lake Cook Road | Suite 210 | Deerfield, IL 60015 TEL 847.282.4225 FAX 312.962.3899 hightoweradvisors.com
Securities offered through HighTower Securities, LLC | Member FINRA/SIPC/MSRB | HighTower Advisors, LLC is a SEC registered investment advisor

To help you in this effort, the Lerner Group would like to invite you to a program we are holding
on Tuesday May 19 on current economic conditions and market opportunities. The program starts
with a buffet at 5:30 PM and goes on from 6 to 8 PM with a give and take discussion about current
market developments. The meeting will take place at the Mission Hills Country Club, 1677 W.
Mission Hills Road in Northbrook.
If you can attend, and all of us hope you can, please RSVP by phone to Maureen Carney at

(847) 282-4143 or Vanessa Martinez at (847) 282-4214 or by email to

mcarney@HighTowerAdvisors.com or vmartinez@HighTowerAdvisors.com.
Sincerely,

Eugene Lerner
Managing Director, Partner

The Lerner Group is a group of investment professionals registered with HighTower Securities, LLC, member FINRA, MSRB and SIPC, and with HighTower
Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through HighTower Securities, LLC; advisory services are offered through
HighTower Advisors, LLC.
This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment
opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment
opportunities referenced herein may not be suitable for all investors.
All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information
contained in this research is provided as general market commentary, it does not constitute investment advice. The Lerner Group and HighTower shall not in
any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other
information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are
provided as of the date referenced. Such data and information are subject to change without notice.
This document was created for informational purposes only; the opinions expressed are solely those of The Lerner Group and do not represent those of
HighTower Advisors, LLC, or any of its affiliates.

500 Lake Cook Road | Suite 210 | Deerfield, IL 60015 TEL 847.282.4225 FAX 312.962.3899 hightoweradvisors.com
Securities offered through HighTower Securities, LLC | Member FINRA/SIPC/MSRB | HighTower Advisors, LLC is a SEC registered investment advisor