Second Half of 2017
U.S. and International equity markets wrapped up very solid returns during the first half of the year. Volatility remains quite low and the largest pullback in the S&P 500 is just over 3%. Should this continue the remainder of the year, it would be the least shallow downturn in a calendar year since 1995. We believe the U.S. market will experience greater that a 3% pullback sometime in the second half.
I opined in my last "Ken's Korner" that I believe many international markets will outperform the U.S. over the next five years. The first six months have certainly been a great start as the MSCI EAFE index was up 15.97% year to date while the S&P was up 11.05%. We expect this outperformance to continue over the long term and have increased international exposure in most portfolios the past 12 months.
I will be attending the Raymond James Summer Development Conference in Washington D.C. in July and look forward to attending breakout sessions on topics on the equity and bond markets, investing for income, Long Term Care Insurance options and Trust Services. These sessions are insightful with numerous ideas that can offer solutions for our clients.
October will mark my 25th year in the business with Raymond James. I greatly value all of the relationships developed over these years. I am truly blessed to have so many terrific clients. Your trust and loyalty is so appreciated!
We continue to be long term bullish on equities overall.
Best regards,
Ken
Views expressed are not necessarily those of Raymond James & Associates and are subject to change without notice. Information provided is general in nature, and is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Past performance is not indicative of future results. There is no assurance these trends will continue or that forecasts mentioned will occur. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment.
Dividends are not guaranteed and will fluctuate.
International investing involves additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets. Investing always s involves risk and you may incur a profit or loss. No investment strategy can guarantee success.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market.
The MSCI EAFE (Europe, Australia, Far East) index is an unmanaged index that is generally considered representative of the international stock market. These international securities involve additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability.
First Trust is an independent organization. Opinions expressed are not necessarily those of Raymond James & Associates or your financial advisor. The author's opinions are subject to change without notice. Information contained in this report was received from sources believed to be reliable, but accuracy is not guaranteed. Past performance is not indicative of future results. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. Raymond James & Associates, Inc., Member New York Stock Exchange/SIPC
Source: Bloomberg. Returns are total returns. The 5-yr. return is an average annual. One-week, YTD, 12-mo. and 5-yr. performance returns calculated through 7/14/17. An index cannot be purchased directly by investors. Past performance is no guarantee of future results.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
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