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- How the markets responded last week
- Second half of the year outlook with slow market growth
- A positive outlook from corporate earnings
- Fewer impediments to the markets equals slow market growth
Last Week’s Market recap and impact
We are almost half way through the market year and last week ended with a nice market run up because of what is going on over in Europe. The May employment report came out with a pop mostly because the economy is recovering from the bad weather earlier in the year (more in the video).
Second half of the year with slow market growth
We believe we will see steady growth throughout the rest of the year with around 3% GDP growth. This puts us in the 5th year of a bull market. The market growth is not spectacular but it is solid. We are starting to see more impediments to that growth fall away (more in the video).
Corporate earnings positive outlook
We look often at the Forward Priced Earnings Ratio for insight on how stocks are trading relative to the company’s earnings. These ratio numbers give us a positive outlook for the rest of the year because it shows a more rational market (more in the video).
Important investors’ insight
This is important because the key to market growth is consumer confidence. If consumers are confident about their jobs and the value of their homes, they will go out and spend which drives the markets higher. Investors should follow consumer confidence so they can understand why the market is responding the way it is and why their portfolios are reacting as they are.
Fewer impediments = stronger market
The economy is in a lot better place than 2008-2010 as the underlying consumer confidence has improved. Even if we have a market dip, the market is able to push through this and inch higher and higher giving us positive slow market growth (more in the video).
Thank you for your comments
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Ashley Page, JD, MBA
Senior Vice President
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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.
The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
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