As August comes to a close, school is back in session, football has returned, the leaves are starting to turn, and we look back on what has been an interesting month in the markets. The August market saw its share of volatility, fueled early on by the threats and tension from North Korea. As tensions eased, and with the help of potential tax cuts and decent economic data, markets were able to recoup most of the month’s initial losses.
The nation continues dealing with Hurricane Harvey and the devastation that it has left behind in Texas. It is great to see a true showing of community and comradery, as Americans from all around the country donate food, supplies, money, time, and most importantly volunteer–all in an effort to care for those who were impacted. Although very tragic for Houston and the state of Texas, we do not expect Hurricane Harvey or its aftermath to have any extended influence the market.
We continue to monitor economic data, sort through headlines in the news, and prepare for the unexpected that the market can sometimes bring. Here are a few things we are watching as we move into fall and toward the end of 2017:
1) What will the Federal Reserve do? It is expected that they will begin to reduce their balance sheet in September. But, will they raise interest rates a third time this year in December?
2) Will inflation increase, and will the economy continue to improve or will we see a slower growth pattern?
3) What will happen with tax cuts and when will they happen?
If you have any questions for us or would like to review your investments or financial plan, please do not hesitate to give us a call.
|Index||August 2017||YTD 2017|
|S&P 500 Composite (Large Cap)||0.31%||11.93%|
|Russell 2000 (Small Cap)||-1.27%||4.42%|
|MSCI World Ex-Us||-0.02%||16.15%|
|Barclays US Aggregate Bond||0.90%||3.64%|