A harsh blow to oil stocks
Over all July was a great month for domestic and international markets. However, emerging markets, such as China and Brazil, got hit pretty hard. Oil continued to decline last week, dropping to $47 per barrel which was a harsh blow to oil stocks. On Friday the DOW Jones ended down and half of that was from Exxon and Chevron oil stocks. GDP was reported lower than expected at 2.3%. This marks the weakest expansion since World War II.
Potential fuel to the fire for interest rates
This week several important reports will be released. Many of these could add fuel to the fire for interest rates as the Fed. will be looking closely at them. We will see the Employment Report, Factory orders, Personal Income and Outlays, along with PMI and ISM manufacturing reports. Our focus is on the consumer as we believe, “So goes the consumer, so goes the economy.”
Conflicting data for the Fed.
The Fed. has conflicting data to deal with when looking at raising interest rates. There is really no inflation in the system at all. We argue that the country is really grappling with deflation. The flip side is that the ISM data, which will be reported this week, historically has been a very good predictor in the past. Above 50 is an expansion. Below 50 is a contraction. The last 30 consecutive ISM reports have been positive.
Smoke from the Republican Debate
This week’s Republican debate might not have much of an impact on your investments. However, the Republican debate serves as a warning that we are at the beginning of the political cycle that can kick up a lot of impactful smoke. We will be moving through that smoke to see if there is any real fire that could impact your portfolio. We will be keeping you updated with what we discover.
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fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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