General Market Commentary as of June 30, 2017
Stocks continued to climb during the second quarter, as a Fed rate hike, valuation concerns, and a fluid political landscape in the U.S. didn’t dent the market. Investors remain overly cautious expecting something disastrous at any moment. The longer investors nervousness continues, the longer this bull market will run.
Bull Market
Economic data fully supports the bull market. The political and social headlines are successfully distracting investors from what really matters, corporate earnings. First quarter earnings were the best since 2011 and the second quarter estimates are looking strong. Stock returns were strong around the globe in the second quarter as emerging markets and international developed stocks outperformed U.S. stocks.
The 10-year U.S. Treasury note finished the quarter with a 2.29% yield after reaching a low for the year of 2.12% in June. The yield curve continues to flatten as the short end reacts to the Fed rate hikes and the long end celebrates low inflation. Don’t expect too much out of bonds in the third quarter.
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 2.57% | 15.46% | 7.33% | 12.21% | 2,423.41 |
| Dow Jones Industrial Average | 3.32% | 19.07% | 8.26% | 10.64% | 21,349.63 |
| NASDAQ Composite | 3.87% | 26.80% | 11.68% | 15.91% | 6,140.42 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
