Things look positive but chaotic. Now more than ever we must remain disciplined in our approach.

Investors need to recommit to a disciplined market approach. The first half of 2017 has been impacted by several geopolitical events.

Interest rates have begun to rise slowly and steadily. The new administration has talked a more business and energy friendly approach. This has many large US manufacturers indicating a willingness to invest in US facilities and jobs.

Positive sentiment was a strong force in the first half of the year. We believe this will continue with regulatory and tax reforms for the second half.

Investors need to recommit to a disciplined market approach. The first half of 2017 has been impacted by several geopolitical events.

The S&P and related domestic equity markets are hovering at all-time highs. Generally, we would be anticipating a pull-back, but this seems to be overshadowed by the optimism around tax reform. Of course, if the current administration is sidetracked by any known or unknown scandal, this moment will most likely be lost.

In Europe the heightened uncertainty brought on by the continued tragic terrorist acts appeared to not impact the capital markets. The European elections also seem to be bringing a calming effect to these markets.

Growth has been outperforming value and we see that trend continuing. We believe that the 2017 will prove to be a solid year in a properly diversified portfolio consistent with the corresponding risk tolerance level.

 

Disclosures: Views are of 06/05/2017, and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Neither asset allocation nor diversification assure a profit or protect against a loss. The data provided is for illustrative purposes only and is not representative of performance of any particular investment. Past performance is no guarantee of future results. The information contained herein has been obtained from sources believed to be reliable but the accuracy of the information cannot be guaranteed.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by McMahon Financial Advisors, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from McMahon Financial Advisors, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. McMahon Financial Advisors, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the McMahon Financial Advisors, LLC’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are a McMahon Financial Advisors, LLC client, please remember to contact McMahon Financial Advisors, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

Download Full Article »

 

We are cautiously optimistic when looking forward over the next 12 months. Although we have seen some reasons to be concerned, we still look for continued expansion in the US economy.

We think we will see a continued period of elevated volatility in spite of the corporate earnings environment which has been supportive of current price levels. The tumultuous political year seems, for the moment, to be behind us. The business friendly administration indicates a push to higher levels in the equity market. Promises of lower corporate and personal long term tax rates are a key reason we believe the markets will respond positively through the balance of 2017. In addition consumer confidence has been bolstered by strong labor market date. The jobless claims remain low (even when factoring in those who have left the job search market). CEO confidence is also rising, and both the manufacturing and non- manufacturing indices rose.

CEO confidence is also rising, and both the manufacturing and non-manufacturing indices rose. Of course many things could derail this momentum.

Of course many things could derail this momentum. Interest rates increases seem to be priced into the market, but many other possible pitfalls lie ahead. The new administration will have to work diligently to avoid scandal, as well as geopolitical strife which we see as having potentially enormous negative consequence. We have observed that overall market consensus has pegged US growth to be between 1.5-2 percent in 2017, which is certainly possible given the significant issues facing the new administration. In spite of the growing debt we feel that higher interest rates and global uncertainty will not be enough to completely January 2017 derail the momentum that we are currently experiencing.

 

Disclosures: Views are as of 1/04/2017, and are subject to change based on market conditions and other factors.These views should not be construed as a recommendation for any specific security or sector. Neither asset allocation nor diversification assure a profit or protect against a loss. The data provided is for illustrative purposes only and is not representative of performance of any particular investment. Past performance is no guarantee of future results. The information contained herein has been obtained from sources believed to be reliable but the accuracy of the information cannot be guaranteed.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by McMahon Financial Advisors, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from McMahon Financial Advisors, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. McMahon Financial Advisors, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the McMahon Financial Advisors, LLC’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are a McMahon Financial Advisors, LLC client, please remember to contact McMahon Financial Advisors, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

Download Full Article »