Each quarter we provide an overview of the global financial marketplace and a future outlook on the market’s potential.
A factor that continues to concern policymakers is the lack of inflation. The Fed’s preferred inflation gauge briefly surpassed the Central Bank’s 2% target in February but posted a greater than expected drop since then, having risen just 1.4% on the year ending in May. A low level of inflation is a concern to the Fed because it calls into question whether the Central Bank will be able to keep raising rates to what it considers normal levels without damaging the economy.read more
With the momentum in the market carrying over from the first quarter, the first half of 2017 has been the best start for global equities since 1998. Although equity markets outside of the U.S. were up more, the S&P 500 had its best first half of the year since 2013. International markets performed well as confidence in economic recoveries around the world have been gaining or surpassing growth in the US.read more
While optimism is prevalent there are always unforeseen factors that could adversely affect the market. Geopolitical risks seem to become more elevated by the week and naturally investors’ appetite for entering into another conflict throughout the world is low. Market participants would rather cheer on legislation that could help spur on economic growth.read more
The first quarter ended with the stock market completing its eighth year of the current bull market, with the Standard and Poor’s 500 Index advancing 6.07%, marking the sixth quarter in a row the index closed in positive territory. Not only was the past quarter one of the least volatile quarters in some 50 years, the sectors that performed well were the stocks that lagged during the fourth quarter last year, as the “Trump Trade” faded.read more