Good evening to all,

Zenith is in WI taking time to spend with family as we value that time. Coincidentally and sadly during this time that should be ideally for family, there is a battle brewing between those that believe that retail stores should be open and those that believe that they should be closed for the holiday.

We believe in most cases that it is healthy to maintain a level of corporate balance that respects the time for employees to enjoy the holidays to the degree that each type of business warrants.

The whole issue is a microcosm of the larger issue with regard to corporate priorities. Obviously, the shareholders and debt holders are a top priority but where does the employee come into the picture?

Everyone has their own ethos in life and attitudes toward corporations are an important extension of ones beliefs. It is when those ethos and the behavior of those corporation are incompatible that problems arise.

The incompatible aspect is amplified as people who are incensed over certain corporate actions continue to hold the company’s securities. If they held the stocks or bonds in an individual account they could sell them and truly express their angst and their beliefs.

However, it becomes a problem if those same investors hold the stock in a 401-k within a larger asset allocation and likely may not even know that they hold the companies that are not aligned with their ethos.

We feel at Zenith that this misalignment can be corrected over time and that the capital markets and the real economy will benefit immensely as beliefs and investments can and should go together. The mechanism is still not there but determined ethos investors will win the day in the future.

Sincerely,

Tom Koehler-CIO