All New High's...

The stock market achieved all new highs during the the month of May... and so did our portfolios!

These record breaking new heights are the result of our strengthening economy. From rising home values to an increase in new job offerings, everywhere we look we are seeing real life examples of the economy improving.

The main two drivers of sustainable growth are always manufacturing and construction. Today, most American manufacturers are back to running at or above optimal levels and thus are now adding additional employees. Manufacturing in the continental US has an advantage over other countries in that we have an abundant amount of low cost energy, thanks to natural gas. This will help sustain this job creating engine of employment for the foreseeable future.

Likewise, we are seeing a big improvement in construction. Residential construction permits are back to solid numbers in suburban communities after a 5 year drought. Commercial construction is visibly strong in most major cities across our country (New York, L.A., Chicago, Seattle, Dallas, etc) as seen by the record number of construction cranes above the skylines.

Going forward, our economy and our portfolios are looking very good. Barring any geopolitical issues, we are on track to meet or exceed our financial expectations over the next 12 months.

Best Wishes... Mark Herhold