Summer Rally Continues

in Market Commentary by

Market Digest – Week Ending 6/20

Well received comments by Fed Chairwoman Janet Yellen provided fuel for stocks to continue their summer rally. Even amid signs of economic growth and a potential increase in (still low) inflation, the Fed indicated it is only likely to raise short term interest rates in 2015 or 2016. Perhaps a sign that investors are growing more confident in the rally and willing to take risk, more volatile small cap stocks outperformed. Volatility in general remains very low, with the VIX finishing the week below 11 for the first time since 2007. The Obama administration said it would not send large numbers of troops back to Iraq and signaled it no longer supports Prime Minister Maliki.

Weekly Returns:

S&P 500: 1,963 (+1.4%)
FTSE All-World ex-US: (+0.8%)
US 10 Year Treasury Yield: 2.61% (+0.01%)
Gold: $1,277 (+1.9%)
USD/EUR: $1.360 (+0.4%)

Major Events:   

  • Monday – The IMF cut its forecast for US economic growth to 2.0%.
  • Tuesday – US Consumer Prices rose 0.4% in May from a month before, more than expected.
  • Wednesday – Amazon revealed its first smartphone and a partnership with AT&T to carry it.
  • Wednesday – The Fed said the US economy continues to rebound and reduced monthly bond purchases by $10 billion, as expected.
  • Wednesday – Dianne Feinstein, chairwoman of the Senate Intelligence Committee told a congressional hearing, “The Maliki government, candidly, has got to go if you want any reconciliation.”

Our take:

This week, I’d like to use this space for some shameless self-promotion. First, Personal Capital was named this week as one of the CNBC Disruptor 50, an exclusive list of companies deemed to be “revolutionizing the business landscape”. Here’s the link: http://www.cnbc.com/id/101724094.

Today, Bill Harris, our CEO was featured on CNBC sharing how we are changing the investment industry for the mass affluent and high net worth for the better. Here’s our blog post. You can watch the video by scrolling down. http://blog.personalcapital.com/personal-capital-news/technology-assisted-financial-advisor-personal-capital-disrupts-wall-street/

It’s exciting. Thanks again for reading our Weekly Market Digest.

 

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Craig Birk, CFP®

Craig Birk, CFP®

Craig Birk is a member of the Personal Capital Advisors Investment Committee. He also serves as Vice President of Portfolio Management. Prior to Personal Capital Advisors, he was an integral leader within the portfolio management team at Fisher Investments. During Craig’s time there, the company increased assets under management from $1.5 billion under management to over $40 billion. His responsibilities included risk management, portfolio implementation oversight, and management of all securities and capital markets research analysts. Mr. Birk graduated from the University of California at San Diego and has earned the Certified Financial Planner® designation.

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