Quarter Two 2017 Commentary

Solid gains and record highs were realized in the second quarter by the major U.S. stock indexes, The Dow Jones Industrial Average (DJIA), The Standard and Poor’s 500 (S&P 500) and the NASDAQ Stock Market. The major international stock indexes, the MSCI Europe, Australia/Asia and the Far East (EAFE) and the Financial Times Stock Exchange Index (FTSE) also recorded new record highs in the quarter.

The Federal Reserve raised the Federal Funds Rate another quarter point, the third quarter in a row with an increase. The slow and steady rate increases we have had are generally tolerated more favorably by the equities markets than are sharp increases. For fixed income investors, the measured rate increases have minimal short-term negative impact but significant long-term positive impact. In short, the increases are great news for long-term fixed income investors.

Where will the stock market go from here? There will always be hiccups, some big and some small, but as long as we continue to produce and consume, the future of the production-consumption barometer known as the stock market is quite bright. In the words of Nick Murray, “The stock market is in the short-term, unknowable, but in the long-term, inevitable.”

I hope you have a wonderful summer and as always, if I can be of service, please let me know.