Let’s Talk Crazy
Weekly Commentary, August 11th, 2017
- Equity markets sold off a bit this week in response to geopolitical tensions with the S&P 500 down 1.33% and EAFE down 2.24%.
- Fixed income markets were mixed with high-quality bonds slightly up at 0.17%, while high-yield bonds slumped -1.21% for the week.
- North Korean Geopolitical Tensions – threats from Kim Jong-Un and aggressive responses from President Trump roiled markets this week (more on this below in the Commentary).
- Earnings Season Update – with over 90% of S&P 500 companies having now reported, year-over-year sales and earnings growth are on pace to come in around 5.5% and 9.9% respectively, and analysts are now upping their expectations for Q3GDP to around 3.5%.
- Brexit Update – for the first time an exact number has been proposed by the U.K. that they’d be willing to pay to exit the EU, $40 billion euros. However, that payment would be contingent on reaching a new trade pact with the EU.
- Commentary: Wars, tragedy and other struggles while frightening and difficult for a time, inevitably fade and give rise to new advancements that lead to even higher heights. Embracing that truth, as opposed to the doomsayers and false “market-timing prophets” has repeatedly proven to be the wiser path.
To read the full commentary, click below!