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July 2019 Market Update

August 30th, 2019

This past month has been quite eventful to say the least. (insert news headlines from July) With so much going on, and so many ups and downs in the market, it’s important to cover the basics and get a general idea of where the market is at, so we can better anticipate where it might be going. Here is a small recap.

With all the talk of recession, people are speculating left and right trying to find the next big red flag. For some it was the escalation of the trade war, and for others it was the yield curve. One thing is for sure though, the FED cutting the interest rate definitely ruffled some feathers. The fed cut rates by -25 basis points, which is a range of -2.00% to  -2.25%. Many experts say that rate cuts will only affect us if they continue on a downward trend. But many believe that this is the only cut that will happen in the short run. The market has had its ups and downs but the year to date numbers do not lie. The Dow is sitting at a +15.16% year to date increase while the S&P 500 took off with an +18.89 YTD increase. This should balance out a slowing GDP with the second Quarters reports looking to be sitting at an annual growth rate at +2.1% when Quarter 1 ended at +2.1%. But growth is still growth. With the holiday season coming up we should see an increase in consumer spending, which well help bolster the economy as fixed business purchases slow down (probably having to do with exports being down).   Gas and oil are both down at 28 cents and 13 cents respectively. Not to mention another recession flag, gold is up $13 from a month ago. With all this happening, retail doesn’t seem to be slowing down because the Consumer Price Index, is up o.1% in June right along side the Producer Price Index. But both are under the 2.0% target set by the FED.

Either way, the economy is still unclear in the direction it is headed. We seem to be moving in a good direction towards a trade deal with China, but the ripple effect of this and the surrounding situations are still moving through the markets. Just make sure that you stay informed of current events so that you can better protect your future. Remember, Plan Smarter & Live Better.