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When You Feel Market Uncertainty, Look At The Facts

by Financial Design Studio, Inc. / July 12, 2018

There are times when investors don’t feel very confident because of market uncertainty looming in the air. The past month has been a good example of market uncertainty. So what should you do when these times come? Look at the facts to gain understanding for what is expected ahead. The following list helps us keep a positive perspective while hoping for positive outcomes with trade.

  1. Strong jobs report:

    The June jobs report beat consensus estimates by adding 213,000 jobs, more than the $195,000 expected.  There are fewer people unemployed, meaning fewer people who need to depend on the government for support.

  2. As of May the trade deficit fell to a 19-month low.

    This is due to exports rising more than the rise in imports.  Exports have grown 11.7% in the last year, while imports are up 8.3%.  This increase in exports faster than imports helps keeps our GDP growth on track for expectations of 3% annual GDP growth or more.

  3. Seventeen of eighteen service industries reported growth in June.

    The category that didn’t show growth was agriculture, forestry, fishing and hunting.  New orders and business activity both rose in June and now stand at high levels. Business activity hit its highest level since 2005.

  4. Personal Income rose .4% in May along with slight increases in other months this year too.

    This has been paired with higher personal consumption as well. These signs help point to a confident consumer.  In addition to this business confidence has also remained elevated.

  5. Second quarter earnings have started and will continue to be released for the weeks ahead.

    Earnings are expected to still be solid. What we will be listening for from company leaders on their earnings call is for guidance and continued spending and expansion ahead.

 

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Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever