China
There is a meeting in China going on that not many people are talking about and could very well be the most important. This meeting is the Shanghai Cooperation Organisation between China, India and Asian countries. What is important about this meeting is that China and India are supposed to produce about 40% of future global GDP. The talking points of this meeting are something to keep an eye on.
The Fed
The Fed is set to meet on Wednesday. The ECB (European Central Bank) and the Fed are expected to continue what they have been doing by buying bonds and the raising rates by around 25 basis points respectively. What’s important though is to keep an eye on what they will project out. The global economy, outside of the U.S., has started to slow down. Will our Fed adjust their rate path because of issues outside the U.S.? Will the ECB increase or decrease their combination? These decisions will likely have huge impacts on how the market preforms for the rest of the year. If rates stay low in the U.S., that could give us a longer leg in equity markets.
Media Merger
There is a huge court decision about a mega media merger that comes out on June 12th. This one merger shouldn’t completely rattle the entire market. However, this will set a precedent on how the market will adjust on future mergers. If the result is positive we could see a wave of mega deals being announced. If not, we could see the opposite and see some quieting down.
Healthcare
Healthcare tends to be a company’s number 2 or 3 expense behind payroll. In looking down the road to 2019, even though there hasn’t been as much discussion lately, make sure to not take your eyes off of this topic. A lot of research firms are following this and estimate that the average healthcare increase across all 50 states could be as much as 32% next year. Virginia is projected to be as high as 64%. If we don’t have major changes in this system we could see a significant uptick in health insurance costs next year.
Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here
Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here
Trey Booth, CFA®, AIF®
Senior Vice President
Wealth Consultant
Email Trey Booth here
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.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.
Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.
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