Our monthly market updates are designed to keep clients and members of the community abreast of market movements, macroeconomic and geopolitical issues and Callan Capital portfolio positioning. We encourage and welcome your feedback.
Global financial markets are in better shape than they were a few months ago – confidence in the economy is growing, oil prices are stabilizing, fears over the Chinese economy are receding and credit spreads are narrowing. The month of May was relatively neutral; the S&P 500 was up 1.80%, while the FTSE All World Ex-US was down -1.51%. Year-to-date through May, the S&P 500 returned 3.57% and the FTSE All World Ex-US returned 0.78%. Investors remain jittery due to short-term risks like an uncertain geopolitical backdrop and a potential raise in rates.
At the last Fed meeting, Chair Janet Yellen stated that if positive data holds, the Fed is looking at a rate increase in the next few months. The latest economic report shows that the economy grew by 0.8% during the first three months of the year. Last Friday’s jobs report showed that the economy created 38,000 new jobs in May, one of the worst months since 2010