In August, market volatility remained low in the traditionally quiet summer months as North Korean missile activity, terrorist attacks in Spain, violence in Charlottesville and Hurricane Harvey dominated the headlines. For the month of August ending August 31st, the S&P 500 Index returned .31% and the FTSE All World Ex-US Index was flat. Year to date, the S&P 500 Index climbed 11.93% and the FTSE All World Ex-US Index increased 18.08%.
The U.S. economy demonstrated solid growth, as real GDP increased at an annual rate of 3.0% in the second quarter of 2017, according to the second estimate released by the Bureau of Economic Analysis. Per the Bureau of Labor Statistics, total non-farm payroll employment increased by 156,000 in August, and the unemployment rate was little changed at 4.4%. The ISM manufacturing index rose to a 6-year high in August, indicating that economic activity in the manufacturing sector is expanding. The consumer sentiment index increased to 97.6, returning to its January 2017 peak indicating that consumers are very confident in the economy and their personal financial state.
Investors are watching to see when progress will be made with President Trump’s healthcare bill and tax reform. The yield on the 10-year Treasury note hit a 10-month low in early September. These falling bond yields combined with an unlikely rate hike by the Fed before the end of the year contributed to a falling U.S. dollar.
In the Eurozone and in international and emerging markets, GDP growth continued. The Eurozone posted a 2.2% GDP in the second quarter while the Euro picked up strength. Japan’s GDP grew to 4% while China posted a GDP of 6.9% in the second quarter.
We continue to believe that a long-term perspective and a diversified portfolio will benefit investors. If you are a client and would like further detail on these topics or anything else, please don’t hesitate to call or email us. If you are not a client, but would like more information on Callan Capital’s wealth management services, please contact us at (858) 551-3800 or visit www.callancapital.com.
Past performance does not guarantee future results, which may vary. This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. For more information regarding Callan Capital, please refer to our most recent Form ADV Part 2A which may be found at www.adviserinfo.sec.gov.
S&P 500®: Standard & Poor’s (S&P) 500® Index. The S&P 500® Index is an unmanaged, capitalization – weighted index designed to measure the performance of the broad US economy through changes in the aggregate market value of 500 stocks representing all major industries.
The FTSE All-World ex US Index comprises Large and Midcap stocks providing coverage of Developed and Emerging Markets excluding the US. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.