We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. 

Declaration of Independence, July 4th, 1776

 

Over 240 years ago, the thirteen colonies originating from Britain declared freedom from it’s parent.  The founders of the United States believed it was their duty to determine a path without the shackles of religious, economic, or historical constraints.  Men like John Adams, Ben Franklin, George Washington, and Thomas Jefferson created the structures and principles which Americans benefit from even today, many centuries later after much blood and treasure was spilled for these rights.  The weekend is full of all the wonderful things our country has now become.  It is populated with magnificent people, diversity and freedom of thought, incredible wealth, free enterprise, great educational institutions, tremendous medical advances, and a global position unparalleled by any other country.  Yes, the United States faces its issues, be it a need for more skills in the general population, better security and infrastructure, more robust educational and economic opportunities for all citizens, a functioning government, and leadership of any kind in the political realm, among others.  Still, on this fourth of July weekend, most citizens in the United States would probably agree the good ol US of A is a wonderful place and we are lucky to be able to celebrate it in our preferred way, be it a barbecue, baseball, swimming, or the most traditional event, a firework show. I hope you enjoy your 4th!!!

It was a good week in the financial markets as investors digested Brexit by deciding to buy the dip after the drubbings last Friday and Monday.  It may have been window dressing during the last week of the quarter, looking at negative bond yields in Japan and Germany and a 10 year Treasury below 1.5%, or more faith that oil prices won’t collapse after draw downs of inventory.  Automobile sales are among the strongest areas of the economy after the first six months figures were the strongest on record through the first half of the year (8.65 million units).  Housing is benefiting from a lack of supply,improved demand, and low, low, and lower interest rates. Whatever it is, owners of equities leave the week in a much better mental state than the Friday following Brexit

Peering into the crystal ball, earnings season is quickly approaching and all eyes will be on banks, oil, technology, and big companies to see if profits are going to improve after six consecutive quarters of compression.  Deal flow has picked up, particularly in technology and media with Gannett buying a small company last week, and the Lions Gate Starz merger.  The purchase of LinkedIn by Microsoft may be the starting gun for corporations to again ramp up the race to find attractive acquisition targets.  With all time low borrowing costs, if not now, then when?