Mackey Advisors

Hard Conversations, Easy Results: Why the Mackey Way Works

Hard Conversations, Easy Results: Why the Mackey Way Works

Here at Mackey Advisors™ we are blessed to work with a fantastic group of clients that we consider our friends.  We adore it when folks send us photos from their dream trips abroad or drop us off chocolate treats from the sweet shop down the street.  While all of these things make my everyday fulfilling, they are not why people hire us.

 

People hire us to assist them on their path to live their most prosperous life.  Somewhere in the midst of all of that includes being an investment advisor, but at its core its about having the fun conversations, the no-so-fun conversations, and navigating the things that life hands each of us.  While we strongly believe this is the best way to do business, its not the easy way to do business.  Part of what makes what we do a challenge is having those hard, not-so-fun conversations.

3rd Quarter Economic Update | November 2018

3rd Quarter Economic Update | November 2018

It can’t get a whole lot better in the U.S. job market (or can it?).  The employment situation continues blast through expectations.  The number of Americans losing their jobs and applying for unemployment benefits each week remained near a 49-year low in mid-October, suggesting no visible deterioration in the U.S. labor market.

Initial jobless claims, on measure of layoffs, dropped by 5,000 to 210,000 in the seven days ended Oct. 13th.  While new jobless claims edged up by 2,000 to 211,750, they have been below 220,00 since early July, a remarkable stretch last duplicated almost a half-century ago.  The number of people collecting unemployment benefits, meanwhile, fell by 13,000 to 1.64 million.  These “continuing” claims touched the lowest level since Aug 1973. 

Additionally, Job Openings just hit a record high and the U.S. Unemployment rate has fallen to a 48-year low while hiring remains robust.  The demand for labor is so strong it’s pushing up the cost of worker compensation and giving an economic growth cycle that’s now more than nine years old the staying power to become the longest expansion ever.

Matt's Monthly Money Must Do's | November 2018

Matt's Monthly Money Must Do's | November 2018

November is popular for the Movember movement.  The whole month is dedicated to foolish men (myself included) growing facial hair for men’s health issues such as prostate/testicular cancer and suicide.  Wade Boggs, Borat, and our own Tom Ferkinhoff all immediately become my mustache idols for November.  Their mustaches could be described just like excellent Scotches are: full-bodied, dignified and balanced.  They are sooooo manly, they appear to have peat in them.  I look more like Larry Bird or Justin Bieber.

On to the Movember related must do’s…

Does Your Insurance Cover Halloween Pranks?

Does Your Insurance Cover Halloween Pranks?

Growing up, Halloween was a time of care free fun.  Scary movies, sleepovers, finding that perfect costume, and of course who could forget the candy!  The only thing that made Halloween better was when it fell on a Friday or Saturday night!

As adults its important to remember that the only danger isn’t just in the movies on TV.Your own little horror story could break out at any moment without the proper insurance to cover yourself.

A Recipe for Financial Freedom

A Recipe for Financial Freedom

It is not every day that I come across a financial article that I feel is worthy of sharing with others.  These days they are often steeped in fear tactics meant to confuse one about their investments or litter someone’s political agenda.  Sometimes the meat of an article is pretty good but let’s just say they are a bit over seasoned.

Thankfully today is not like every day, and when I was checking some financial news on Marketwatch this morning I found something that I thought you all might like.

2nd Quarter Economic Update | August 2018

2nd Quarter Economic Update | August 2018

The 2nd quarter increase in real GDP reflected increases in consumer spending, exports, business investment, and government spending.  The only decreases were in business inventory investment and housing investment.  The increase in consumer spending reflected increases in services and both durable and nondurable goods.  The unemployment rate is low, wages are increasing and people, in general, feel good about their financial situation.  The increase in exports reflected increases in exports of goods.  Clearly a result of foreign companies purchasing supplies prior to tariff rate increases going into effect. 

Concerns, however remain.  Last quarter we noted the possibility of the economy overheating.  We now believe this is less likely because of the potential impact of a global trade war.  Business activity appears to be slowing as companies weigh the odds of there being a trade war or not.  As is, the tariff increases that have been implemented are small relative to global trade.  The real danger continues to be the uncertainty about what happens next.  If trade tensions sap business confidence, causing executives to put off capital spending and other investment decisions, then the damage could get serious.  Time will tell. 

Matt's Monthly Money Must Do's | July 2018

Matt's Monthly Money Must Do's | July 2018

The 4th of July seems like such an odd thing to celebrate.   We are really celebrating the most famous divorce decree ever written.  Don’t get me wrong, I love the document, but it was just a bunch of bitter guys generating a divorce decree with barely any input from the counterpart. 

From now on, I believe we should turn Independence Day into Financial Independence Day.  Start celebrating those who have hit financial milestones.

On to the To-Do’s…

Common Pitfalls of Comparing Investment Returns

Common Pitfalls of Comparing Investment Returns

I hear it all the time.  Having lunch with a friend, “My portfolio is up 15%” or from a friend at another financial firm, “Our portfolios are up 10%”.  My initial reaction is to do a quick back of the napkin comparison.  Reality sets in and I start asking questions to better understand what they are talking about.  What I realize is they are quoting raw returns.  The raw return is the return over a past time period (such as 6 months, 1 year, etc.), without adjusting for risk.   Looking at only the raw return can twist your perceptions about how your portfolio is performing and lead you to bad choices – i.e. taking on more risk or flip-flopping from one investment strategy to another. 

1st Quarter Economic Update | May 2018

1st Quarter Economic Update | May 2018

Our economic indicators continue to run positive for the first quarter of 2018.  Consumer spending, business investments and residential fixed investments rose at a 4.6% annual rate.  Gross Domestic Product (GDP), a broad measure of the nation’s overall economic activity has shown consistent growth over the past three quarters; up 3.2% in 2017’s 3rd quarter, 2.9% in the 4th quarter and 2% in the 1st quarter of 2018.

While the economic news is positive, there is now a concern the economy is potential overheating.  The period of easy money has come to an end.  The Fed is raising interest rates, albeit slowly.  However, there are growing employment pressures which have impelled economists and market watchers to voice concern over the potential for rapid inflation.   In addition to this, global trade rhetoric and the risk of political gridlock, have marked the return of stock market volatility.

The Eurozone economy finished 2017 with a bang showing growth at the fastest pace since 2007.  Year-over-year, GDP in the region grew at a 2.6% pace with Germany and Italy having picked up the pace.  The German economy rose 0.8% on the quarter while France, the 2nd largest economy, and Italy both grew at 0.5% on the quarter and 2.2% annualized.  However, the economic machine has throttled back to neutral.  The tariff debate and other political concerns are primarily to blame.  Whether or not this is a passing condition remains to be seen.

Quiet Market Turn Scary...Create Opportunity

Quiet Market Turn Scary...Create Opportunity

If you haven’t been paying close attention to investment markets, you might be now.  While the investment world spent the year 2017 plodding steadily upward with relatively low volatility, the New Year has brought with it over-exuberance in January followed by mild panic in February.  Needless to say, markets have definitely caught our attention over the last few days.

Our call to “stay the course” couldn’t be stronger.  We have advised folks to expect a market correction for over a year now.  Markets will generally experience a 5-10% correction in any given year, yet we actually closed in on a 24 month run without one.  It’s been long overdue and actually welcomed after the feverish pace at which stocks were purchased in the month of January.  While the economy continues to be on solid footing, no significant changes spurred on January’s buy excitement, and nor did they contribute to the sell-off we have seen the last 2 trading days.