Kevin Gahagan

Kevin Gahagan, CFP® specializes in working with professionals and corporate executives in providing advanced financial planning and investment strategy.
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Market Watch 2018 Q2 - Mosaic’s Quarterly Market Commentary

Kevin Gahagan / Jul 24, 2018 / Market Commentary

The markets have been noticeably more volatile in recent months as the economic recovery approaches its limits. Between trade wars with China, continued uncertainty on the Korean Peninsula and with Russia, and a tightened monetary policy by the United States Federal Reserve—recently joined by the European Central Bank—we are seeing the beginning of a slowdown to one of the longest economic recoveries in history. 

The new issue of Market Watch is out now. 

More insights are inside the issue, including a breakdown of current economic factors influencing the markets.

 
Click here for the full issue.
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Market Watch 2018 Q1 - Mosaic’s Quarterly Market Commentary

Kevin Gahagan / Apr 17, 2018 / Investments / Market Commentary

This is a tale of two market environments.

As clients can see in their quarterly reports, the one-year numbers show strongly positive returns with very few exceptions.

In contrast, the first quarter of 2018 was a different story. First quarter numbers were negative in a majority of investment asset classes.

It remains to be seen whether this represents the beginning cracks in the long growth run we’ve enjoyed since the end of the great recession in early 2009.

After experiencing relatively calm markets in 2017, volatility returned in the first quarter of 2018. Bond prices fell as interest rates rose, while US and international stocks declined. With tensions heating up between the US and leading communist countries (including potential trade wars with China, nuclear tension on the Korean Peninsula, and the expulsion of Russian diplomats), there is a great deal of uncertainty on the global stage, which all contributed to a weak first quarter.

The outcomes weren’t terrible, but all of this is a change from the positive growth trends we’ve enjoyed recently.

Our new issue of Market Watch is out now.

 

More insights are inside the issue, including a breakdown of current economic factors influencing the markets.

Read our quarterly market commentary today to get a better idea of our investment approach.

Click here for the full issue.

 

Read more...

Ask an advisor: What are my options for an emergency fund?

Kevin Gahagan / Mar 16, 2018 / Financial Planning

Regardless of your personal circumstances, having some of your assets in a readily-available reserve is prudent planning.

No one can predict the future, so it’s best to plan in case of emergency or market downturn. 

So what are your options for an emergency fund? What about for a liquidity reserve? And how do the two differ? 

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Market Watch 2017 Q4 - Mosaic’s Quarterly Market Commentary

Kevin Gahagan / Jan 17, 2018 / Investments / Market Commentary

2017 marked a year of widespread data breaches, the beginning of the Trump presidency, devastating hurricanes, wildfires that raged throughout California, and a cryptocurrency frenzy reminiscent of the Dot.com bubble. However, through it all, 2017 saw a long, steady rise in the stock markets.

It was a year of record highs as we saw the NASDAQ surpass the 7,000 mark and the Dow Jones Industrial Average roar past the 25,000 mark. US large cap returns reached 21.8%, pushed by the technology sector’s rise of 35.4%. Although small cap stock returns were lower in comparison, they still returned a very positive 14.7%. As strong as US market returns were, international markets performed even better.

All of the encouraging economic trends seen in 2017 makes us optimistic about the prospects for 2018. We are currently in the second longest economic recovery in US history.

With this in mind, many argue a recession must be imminent.

But positive economic data in the US and in most countries globally gives us a less pessimistic outlook. Labor markets are strong, economies are growing around the world, and consumer and investor confidence is high.

In addition, consistently low inflation, falling unemployment, and rising standards of living around the world all offer reason for optimism about the year ahead.

 

Our new issue of Market Watch is out now.

More insights are inside the issue, including a breakdown of current economic factors influencing the markets. Read our quarterly market commentary today to get a better idea of our investment approach.

Click here for the full issue.

 

Read more...

Ask an Advisor: Property Insurance and Rising Home Value

Kevin Gahagan / Nov 1, 2017 / Insurance

Bay Area property value is rising. And rising. Kevin Gahagan, CFP®, Mosaic’s principle and Chief of Investments, has practical advice for curious local homeowners with regards to how this may impact their property insurance, and a few words for dwelling coverage  with regards to Californias recent wildfires.

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Market Watch 2017 Q3 - Mosaic’s Quarterly Market Commentary

Kevin Gahagan / Oct 27, 2017 / Investments / Market Commentary

There was solid economic growth and rising values in markets around the globe in the third quarter. 

This trend held for all major asset classes—both equity and fixed income. In the US, both large and small company stocks generated solid returns for the quarter. This continued the trend seen so far this year and throughout 2016.

Given the more recent decline in the value of the US dollar, international equity returns have been even more robust than those in US over this period.

 

Further summary:
  • Domestic stocks performed well year-to-date. The S&P 500 Index (US large companies) and the Russell 2000 (small US stocks) rose 14.2% and 10.9% respectively.
  • Equities in the developed countries overseas enjoyed substantial gains with the MSCI EAFE Index (large companies) returning 20.5% while the EAFE Small Cap Index rose 25.8%.
  • Emerging market stocks have risen 28.1% over the last twelve months (MSCI Emerging Markets Index).
  • Domestic bond market returns faced a headwind of rising interest rates in 2017, yet still delivered modestly positive returns in most categories.
  • Economists expect moderate inflation in 2018. The Fed can be expected to continue raising interest rates while it also seeks to reduce its balance sheet. We believe they’ll do both gradually with care to limit  economic impacts.

 

More inside the issue, including a breakdown of current economic factors influencing the markets:

Click here for the full issue.

 

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Growth vs. Value: Two Approaches to Stock Investing

Kevin Gahagan / May 4, 2017 / Investments

In the world of investing, stocks and stock mutual funds are often classified into one of two fundamental styles: value stocks or growth stocks.

Growth investors seek companies that offer the promise of strong future earnings growth, while value investors seek stocks that appear to be undervalued in the marketplace.

Because the two styles have different investment characteristics and performance, employing both approaches to stock investing can help add positive diversification to your portfolio when used together.

Let’s look at their individual characteristics, and then discuss the objectives of combining the two styles. 

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