A June Overview

The markets have been running up recently, primarily on the back of strong performance from the technology sector.  The summer months tend to experience lower levels of trading, so we would expect a bit more volatility during these months.  But, there are a few trends we are seeing that define the markets move up:

  1. We are finally getting economic growth from the rest of the world.  For the last eight years, it has been the US, and everybody else.  Our economy has pulled the global economy higher.  However, in 2017, we’re starting to see much better growth coming from places like Japan, Germany, Spain and even the UK.  If these countries continue to participate, we have a chance for a sustained market run.
  2. Rates are still rising.  The FED raised rates for the second time recently and we expect one more hike before year end.  Typically, rising rates curb economic growth.  However, since we’re starting from such a low level, it will be a long time before the level of rates dents our economic growth.

As mentioned, we would expect the markets to level off and even potentially correct in the next couple months.  But, we also feel that any correction in this time frame will give way to higher prices by year end.  As such, we’re exploring ways to capitalize on any market weakness in this time frame.  

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