When the Dow drops 300+ points in a day as it did to end the month, it’s not uncommon to experience some anxiety. However, the recent sell-off still hasn’t qualified as even a 5% correction; and while we continue to monitor the evolving conflicts overseas (Ukraine, Iraq, Israel, etc.), the most recent economic reports continue to show the US economy as remaining firmly in growth mode.
Data from the Institute for Supply Management (ISM) for both services and manufacturing surprised economists to the upside for July. The ISM Services Survey shot up to a new high in July, lifted by substantial gains in Business Activity which had a reading of 62.4%. The Manufacturing Survey also gained ground with the Purchasing Managers Index now at 57.1% (readings over 50% indicate ongoing economic expansion). Such strong readings for the sixth year of this economic recovery raises the question of whether the economy might be accelerating – which could advance the Federal Reserve’s schedule for raising short-term interest rates.
At the same time, consumer confidence continues to strengthen alongside recent gains in job growth and an improving labor market outlook. The Consumer Confidence Survey from the Conference Board shows that confidence in July jumped to the highest level since October 2007. Even though the consumer Sentiment Survey from the University of Michigan /Reuters slipped slightly over the same period, it remains in an uptrend as well.
In Other News…
CWM is excited to announce that we have recently purchased cutting-edge technology that measures risk tolerance in a quantitative way for our clients; it’s built on academic framework which won the Nobel Prize for Economics and accurately captures risk tolerance with 96% certainty. It’s our opinion that until now, the risk tolerance tools that were available to advisors were always lacking in quality/accuracy. We believe this additional investment in technology will add significant value to our clients, and hope you will take advantage of this service.
We can pinpoint your risk tolerance with math, and double check your portfolio to make sure it fits your Risk Number; each investor has their own personal risk tolerance that is as unique as a fingerprint.
Click here to get your FREE RISK SCORE!
As always, please don’t hesitate to contact us at 913.402.6099 if you would like to discuss your current investment strategy and to receive a free analysis of your portfolio.
John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit https://www.chladekwealth.com.