SHARE:  
Beacon Wealth Management Weekly Market Commentary 






























P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added. A friendly referral is the finest compliment we could ever receive and we encourage it. 

The 2017 LPL Research Mid-Year Outlook: A Shift In Market Control

Dear Valued Client:
 
A long-overdue and highly anticipated shift is underway that may change the character of the rest of this
economic cycle. Specifically, the Federal Reserve (Fed) has finally been able to follow through on its
projected rate hike path, including the second hike for 2017 announced at the conclusion of the Federal
Open Market Committee's June 13-14 meeting. This move highlights two important signals - first,
the Fed increasingly trusts that the economy has largely met its dual mandate of 2% inflation and full
employment, but second and of perhaps even greater importance, it appears there may finally be a new
driver - the long-awaited arrival of fiscal policy - that may provide the economic backstop that monetary
 policy has offered throughout this recent expansion.

Here are several key themes focused on how the change in market leadership may shift through year-end
and beyond: 

- Monetary policy: Slow path to normalization.  Maintaining economic growth without extraordinary
central bank support will be key.

- Business fundamentals: Now taking control. A focus on well-run businesses with the potential for
 earnings gains may favor active management.

- Economic growth: Confidence not enough, yet. Business and consumer confidence has improved,
but greater policy clarity may be needed to spur growth.

- Fiscal policy: Pro-growth potential, but when? Fiscal policy support remains likely, but the
timetable may be pushed back to 2018.

Even with fiscal policy on standby, the return to business fundamentals, such as renewed corporate
earnings growth, can now act as a market catalyst. The Fed will still have its role to play, but monetary
policy is powering down as the driver of financial market strength. Thus far in 2017, the consistency of
this new fiscal-led dynamic has been uneven, leading to shifting market leadership. It is important for
 investors to appreciate that despite these developments, U.S. equity indexes managed to progress through
the first half of 2017 either at, or very near, all-time highs.


As political distractions have periodically surfaced, anticipation of a full transfer away from monetary
policy has diminished and stock market leadership has at times turned away from those areas best
positioned to benefit from the proposed fiscal policies. While the latest delays could push some key fiscal
policy initiatives into 2018, the odds still favor corporate tax reform ultimately being achieved, along with
 progress on deregulation and potentially infrastructure at a later date. 

 What are the implications of fiscal policy as a new market driver? Much like a portfolio can benefit from
diversification, the economy and markets can benefit from different drivers working at different times.
If we have shifted to new market dynamics, including a greater role for corporate profits, understanding
the evolving opportunities will be important for diversified investors. As monetary policy powers down,
business fundamentals power up, and fiscal policy helps get the U.S. economy off of standby mode, LPL
Research's Midyear Outlook: A Shift In Market Control can help you identify opportunities that may arise,
navigate the challenges that will inevitably come, and help you stick to your long-term investing plan.

Enjoy the read and as ALWAYS, feel free to call us at any time with thoughts, questions and/or concerns.




It's Your Vision, It's Our Guidance......

Thank you and take care. Enjoy. 

Your Beacon Wealth Management Team

Please visit us on the web at www.bwmglp.com to check your account, watch our interactive video newsletter assortment or to simply learn about who we are. 

Your Team at Beacon Wealth Management Group, LP 

Beacon Wealth Management Group 
1055 Parsippany Blvd 
Suite 502 
Parsippany, NJ 07054 

Phone- Main: 973-335-0100 x 302 

Fax- Main: 973-335-0048 
E Fax: 973-556-1645 

Confidentiality Note: The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete. 
 
Securities offered through LPL Financial, LLC Member FINRA/SIPC.
 
Beacon Wealth Management Group, LP
973-335-0100
acalabrese@bwmglp.com or ldacosta@bwmglp.com
http://www.bwmglp.com