03|04|2016

Ebb and Flow…

As I’ve watched the markets ebb more than flow over the last week the head winds that tend to look so mild during good times have started to mount.  Working against us are: A new fiscal cliff, Obamacare, the 2014 US Budget, “tapering” of the Federal Reserve Board’s 3 year easing policy, and the appointment of a new Federal Reserve Chairperson in January.  While this does spell volatility, it does not spell long term losses. The road map for a successful resolution of these mostly political issues is there.  It’s just weather or not the politicians have the fortitude to do what needs to be done.

I’m comforted by the fact that all but 2 leading indicators are in positive territory through July.  Remember that it’s about the free market’s road ahead, not political wrangling.  The Federal Reserve is of the view that our economy is on the mend and that the liquidity it has provided us for the last three years is not as deeply needed at this point.  That as well is encouraging!  In addition S&P earnings for the 2nd quarter are poised to hit an all time high.  All things considered there are things for us to be weary in near future, however the long term health of the US economy appears to be in good shape.

Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services.  Broad diversification across several asset classes with a long term holding strategy is the best strategy in any market environment.

If you would like an in-depth analysis of your current positions and allocation, please feel free to call Jason Roque at 719-313-7536 to schedule an appointment.

Sources: mfs.com, oppenheimerfunds.com, and morningstar.com

* Financial Action, Inc. is a Registered Investment Advisor.