Market Commentary, 06/08/18
The market closed the week higher with the Dow up 2.41% and S&P increasing 1.22%, with both indexes closing in the positive for 2018.
While the market was positive earlier this week, it’s relatively flat today as it reacts to President Trump’s G-7 meeting in Canada today. Specifically, he has been hammering the inequity of our Canadian tariff deals, which have been in place since just after World War II (e.g. American dairy products have a 270% tariff if exported into Canada). According to President Trump, US allies have been “taking advantage of the US on trade.”
In addition to the G-7 Summit, the president is going to Singapore tomorrow for a meeting next week with North Korea. The trade tensions along with the uncertainty of the upcoming meeting will likely keep investors on the sidelines for several days.
In positive news, the Wall Street Journal reported on Tuesday that for the first time since 2000, when economist’s started measuring, there are more jobs available than unemployed people to fill those jobs. Additionally, a poll released today reported that 59% of people think the economy is doing well. Supporting this rather positive sentiment is the fact that American’s credit card debt is near an all-time high, indicating US consumers feel good about the economy.
There could be an increase in short-term volatility surrounding international trade concerns, but the US economy is strong and we expect the market to continue upward.
Wayne Copelin, CFP®
President, Copelin Financial Advisors, Inc.
514 Brooks Street
Sugar Land, TX 77478
Phone (281) 240-2902
Fax: (281) 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.