The Trust Administration and Investment Committee of Coral Gables Trust (the “TIC”) remains of the opinion that the fundamentals of the economic recovery are in place. During early stages of recovery, as the economy transitions out of recession to recovery and eventually to expansion, mixed economic data is to be expected and will tend to translate into heightened capital markets volatility – for now, unfortunately, this is our new normal.

As the economy searches for more stability in areas such as employment and housing, and as we come off of the various forms of stimulus, we fully expect mixed economic data. However, we do not believe that this mixed data and volatility are signally either a double-dip recession or an imminent severe decline in markets.

We are long term investors and fundamentalists in our investment management approach and in fundamental terms, the valuation on the S&P500 is very attractive at its current level verses its historical average; the Price to Earnings multiple on the S&P 500 today is approximately 12.5 and this is 25% below the historical average for the index.

We continue to believe that the US equity markets are building a base on which to move higher as the overall economy expands and as corporate profits continue to grow.

On behalf of the Trust Administration and Investment Committee of Coral Gables Trust,

Sincerely,

Joseph Nader
Chief Investment Officer
Coral Gables Trust
255 Alhambra Circle, Suite 333
Coral Gables, FL 33134
786.497.1214