Brexit

Words From Withers

A monthly market snapshot for discerning investors

June 2016 Supplement

Yesterday the United Kingdom voted to leave the European Union. This was very much a surprise to some but to others reasserts British sovereignty.

In the near term we are going to get a lot of market volatility. Gold will likely rise, treasury rates will come down and stocks will sell off temporarily.

The uncertainty of the event will cause the purging of stock positions by weaker hands but longer term I think this can be a constructive buying opportunity.

Our management accounts hold a minimum of 20% cash with most of the positions in defensive industries such as healthcare. While it is ridiculous to think we won't have short term hits to portfolios we are positioned to take advantage of some of this volatility.

As I stated in our most recent Words From Withers, having a risk management plan is critical to success in these markets and today is another reminder.

Please feel free to send along questions.

Best,

Timothy C Withers

Firm Principal, CLU,ChFC, MBA

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Disclosures:

S&P 500 An index of 500 stocks chosen for market size, liquidity, and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and it meant to reflect the risk/return characteristics of the large cap universe.

Dollar cost averaging does not assure a profit and does not protect against a loss in declining markets. This strategy involves continuous investing; you should consider your financial ability to continue purchases no matter how prices fluctuate.

"Asset allocation does not protect against loss of principal due to market fluctuations. It is a method used to help manage investment risk."

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

Dow - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.

FactSet Earnings Insight February 6, 2016 edition was used for information contained in the Micro Section of this newsletter.

Rebalancing assets can have tax consequences. If you sell assets in a taxable account you may have to pay tax on any gain resulting from the sale. Please consult your tax tax advisor.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. MSW Financial Group is a member firm of PartnersFinancial, a platform of NFP Insurance Services, Inc. (NFPISI), which is an affiliate of Kestra IS. MSW Financial Group is not affiliated with Kestra IS, Kestra AS, or NFPISI.

The above links are provided for your information only. As they are provided by third parties, Kestra Investment Services, LLC (Kestra IS) does not endorse, nor accept any responsibility for the content. Kestra IS does not independently verify this information, nor do we guarantee its accuracy or completeness.

The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. It is not guaranteed by Kestra Investment Services, LLC for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

The indices mentioned are unmanaged and cannot be directly invested into. Past performance does not guarantee future results. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market.

MSW Financial | c.617-312-6256 | o.781-319-0098| tim@mswfp.com |www.mswfp.com