The Past, the Present, the Future
Weekly Commentary, August 25th, 2017
- Equity markets were positive this week with U.S. stocks (S&P 500) up 0.76% while international stocks (EAFE) were up 0.85%.
- Fixed income markets were also positive with investment grade bonds (AGG) up 0.15% and high yield bonds (JNK) up 0.87%.
- Earnings Season Update – with over 95% of S&P 500 companies having reported their earnings sales and earnings growth are set to post gains of 5.3% and 9.3% respectively.
- Brexit Update – “The Bloomberg Brexit Barometer gained for a third straight day as the U.K. government indicated that Prime Minister Theresa May was softening her stance on court jurisdiction in order to hasten the divorce talks.” – Bloomberg
- Debt Ceiling/Tax Reform – Shortly after Senate Majority Leader Senator McConnell stated “there is zero chance” the debt ceiling doesn’t get raised, President Trump disagreed stating that he would not sign any such bill unless it included funding for a wall along the Mexican border. Trump’s comments roiled markets Wednesday after a strong Tuesday based on renewed hope of new tax legislation.
- Commentary: Investors should be prepared for a fall full of twists and turns from old issues and new. Far from being something to fear, it could actually give investors their best chance for an attractive buying opportunity in some time.
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