Market Digest \u2013 Week Ending 2\/5\r\n\r\nA softer than expected jobs report helped spark a Friday sell-off which left stocks lower for the week. Technology and Energy shares led declines. The dollar fell against most currencies as expectations for the number of rate hikes this year. Primarily due to currency, international stocks held up better than domestic issues. Gold and Treasuries rose.\r\n\r\nWeekly Returns:\r\n\r\nS&P 500: 1,880 (-3.1%)\r\nFTSE All-World ex-US: (-2.6%)\r\nUS 10 Year Treasury Yield: 1.84% (-0.08%)\r\nGold: $1,173 (+5.1%)\r\nUSD\/EUR: $1.116 (+3.0%)\r\n\r\nMajor Events:\r\n\r\n\u2022 Monday \u2013 J.P. Morgan Chase agreed to buy almost $1 billion of loans from Lending Club.\r\n\u2022 Monday \u2013 The Commerce Department reported a 0.3% increase in income but flat month over month spending.\r\n\u2022 Monday \u2013 Yahoo was reported to be planning cutting 1600 jobs and closing several business units.\r\n\u2022 Tuesday \u2013 Chipotle reported a 44% profit decline as a result of the E. coli events.\r\n\u2022 Thursday \u2013 LinkedIn reported a Q4 loss and issued disappointing sales guidance. Shares fell 43% in Friday trading.\r\n\u2022 Thursday \u2013 Initial jobless claims were reported at 285,000, modestly above expectations.\r\n\u2022 Friday \u2013 The Labor Department reported job growth slowed in January. The official unemployment rate dropped to 4.9%.\r\n\r\nOur take:\r\n\r\nLinkedIn shares were cut nearly in half after issuing disappointing guidance for 2016. The severe reaction highlights the lack of mercy markets are affording earnings misses, especially in growth stocks. It is an underappreciated fact that growth stocks have been outpacing value for most of the last six years. As a result, the valuation gap has grown. Growth stocks are more expensive compared to value than usual.\r\n\r\nWe recommend a balanced approach between growth and value. We urge caution if your portfolio has gradually become concentrated in growth stocks, especially the big winners from the last year. In general they are down more than the market so far this year. They may bounce back, but if this turns into a full-fledged bear market they still have the farthest to fall.