July was a month of recovery for investors in a year that has been one of ebb and flow. The S&P 500 managed close to a 2% gain to help offset the June losses. Meanwhile, the Barclays Aggregate Bond index squeaked out a modest gain as well.* Unfortunately, the first week of trading in August has taken away most of the July gains for stock investors. China and Greece seem to create quite a bit of volatility in our domestic markets.
Looking at our own economy, interest rates are continuing to be in focus as many expect the Fed to begin raising rates very soon. If you look closely at the short term rates, you will see that treasuries have already begun to rise slightly in anticipation. However, you can see a much more noticeable DECREASE in rates on the long term side of the yield curve has occurred over the last several months. You normally see a flattening yield curve like this when the economy is weak. Although GDP numbers don’t imply the US is pumping on all cylinders, I think the yield curve movement is indicating that future increases by the Fed in short term rates may be slow and deliberate.
Over the past weekend, I had the opportunity to play in an annual Father/Son baseball tournament in Chicago. Every year I get that “Field of Dreams” feeling of playing catch with my dad, but also playing ball with my son. This year my brother and nephew also joined in on the fun. My nephew and I pitched. My brother and my son both caught and played outfield. We all hit the ball well. A pretty exciting weekend with the added bonus of having a 70 year old grandfather playing first base, watching all this unfold. This doesn’t have much to do with how the markets performed in July, but the point is to always make time to take a step back and have a little fun and excitement.
Speaking of excitement, as you may have read in our newsletter, we will be moving our office to our new location at the end of the month. In September, you will find us at 2963 Erie Canal Road, Terre Haute, IN 47802. On the day of our move (August 28th), you may have trouble contacting our office or viewing client reports online. We apologize for the inconvenience, but hope that any disruption is brief as we are really excited about all the great benefits the new space will provide.
Index information is used to represent market performance, but you cannot invest directly in an index. Past performance is not indicative of future results.
Advisory services provided through IPI Wealth Management, Inc. Securities offered through Investment Planners, Inc., member FINRA/SIPC.
The Volkers Group, LLC is not affiliated with Investment Planners, Inc. or IPI Wealth Management, Inc.
Investment Planners, Inc., IPI Wealth Management, Inc. and The Volkers Group, LLC do not provide tax advice.
The following social media links will take you away from our website. Please be aware that neither Investment Planners, Inc. or The Volkers Group, LLC are responsible for the content available on external websites.