Cisco is a worldwide leader in communications equipment. Originally created to provide routers and switches for Ethernet-based networks within enterprises, the company has expanded into collaboration, data center, service provider video, security, wireless, analytics, and other hardware and software niches.

U.S. stocks were lower on Friday morning following higher-than-expected inflation numbers, which lowers expectations for a rate cut in the near term. The Producer Price Index (PPI) rose 0.3%. Core PPI rose 0.6%, the largest increase since January 2023, with both readings well ahead of their expected 0.1% increase. The latest readings bring annual PPI to 0.9% and core PPI to 2.6%. On the earnings front, Coinbase Global (COIN) shares rose 15% after it reported a profit. The S&P 500 was nearly flat, up 0.01%, the Dow was down less than 0.1% and the Nasdaq fell 0.2%. Crude oil traded above $78 per barrel and gold was up 0.3% to $2021 per ounce.

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.