2017 2nd Quarter Commentary

During the quarter, equity markets moved higher to close out a strong first half of the year. In fact, this was the strongest first half since 2013. The S&P 500 ended the quarter at 2,423—slightly below the record high set on June 19. The Fed increased interest rates for the second time this year and plans to increase rates further. Market participants are doubtful of this plan, and longer-term interest rates have declined. Economic fundamentals such as consumer spending, housing, and manufacturing remain healthy, but they have not accelerated as expected, and recent reports have fallen short of lofty expectations. Congress remains focused on the repeal and replacement of the Affordable Care Act, while the market waits for progress on tax reform and reduced regulation. We continue to position portfolios for modest growth. Volatility may reappear if Congress disappoints with the level of tax cuts.

Download the 2017 2nd Quarter Commentary