Q1 2017 – Market Summary – April 3Submitted by First & Main Financial Planners - East Bay Area: Oakland, CA on July 20th, 2017
We’ve had a nice start to 2017.
Many stock indices around the globe returned decent to very strong numbers.
So far this year our emerging markets fund is up 13.68%, international small cap value up 7.73%, momentum up 9.26%, S&P 500 up 6.03%.
Our most often used domestic small value fund is up only 0.25% but it had a big run last year (+26.86%). Our most often used bond fund is up 1.09%. When you mix it all together, depending on your asset allocation, we’re all doing well in relative terms.
I have a lot of people telling me they’re afraid of the markets, things have gone too far too fast, or they’re sure a political shoe is going to drop.
We’re not guessers. We can’t predict the future. What I can tell you with total certainty is the market, at the moment, has good underlying strength and appears to be behaving rationally.
We never fully recovered from the financial crisis with our economy bumping along for years at an anemic rate. Stated unemployment figures are low by historical standards but they don’t count the millions of people who voluntarily left the work force.
The potential does exist for our economy to return to more normal growth rates (based on historical averages) and with it higher profits and greater wealth for us. Europe has been a serious drag on the global economy but Brexit has sparked an interest in less regulation and more freedom with waves currently being made in France (2nd largest European country by population). Jean-Claude Junker, President of the European Commission, even recently stated that the European Union has been overreaching.
With the branch potentially bending back on a global scale to a more frictionless system there is hope to be had in economic terms. Things can change quickly but sticking with high quality reliable assets has been shown to work over the long term.
As always, I truly appreciate the confidence you’ve place in us with your assets and I want you to feel free to call at any time regarding your portfolio or any personal financial matter.
Erik S. Wolfers, MBA, CFP®