Client Login 401(K) Login

Global stocks charged ahead gaining 2.8% in July as all stock asset classes posted gains. U.S. large value stocks led the way with a 4.2% gain. Despite a positive month across the board, international stocks remain in the red year-to-date. Bonds were essentially flat during July, although inflation-protected bonds fell 0.5% in response to changes in inflationary pressures.  

Economy 

  • The first estimate of second quarter real GDP growth came in at an annualized rate of 4.1%. This increase of almost 2% from first quarter’s figure marks the fastest growth rate posted since the 3rd quarter of 2014.
  •  Inflation, measured by the Consumer Price Index for all goods, ticked up slightly to 2.8% year-over-year. Energy prices decreased during the month but gained 12.0% over the past year.
  •  Unemployment remains near business cycle lows at 3.9%.

Stocks

  • The S&P 500 (+3.7%) generated strong gains to start the second half of the year. U.S. small cap stocks (+1.7%) also managed solid gains during July.
  • International developed (+2.5%) and emerging market (+2.2%) stock asset classes reversed portions of their losses from earlier in 2018. International large value stocks (+2.9%) outdid all other developed market stocks last month.

Bonds

  • Reacting to an insignificant nudge upwards across the yield curve, short-term bonds (+0.1%) and intermediate-term bonds (+0.0%) were effectively flat.
  • Inflation-protected bonds (-0.5%) fell slightly during July but have still generated a 1.2% gain over the last 12 months.
  •  International bonds (-0.1%) were also relatively flat for the month.

Alternatives

  • Global REITs (+0.9%) and reinsurance (+0.7%) each made gains during July. However, commodities (-2.1%) and managed futures (-0.6%) each fell in part due to volatile energy markets.
     

Read our complete July 2018 Economic & Market Commentary for Market Returns Year-To-Date, Market Returns Longer Term Annualized, Economic Indicators, and an Appendix.


Sources: Bureau of Economic Analysis (BEA), Federal Reserve, Morningstar Direct, and Standard and Poor’s.

This is intended for informational purposes only and should not be construed as legal, investment or financial advice. Please consult your legal, investment and financial professionals regarding your specific circumstances.

About Savant Wealth Management

Savant Wealth Management is a leading independent, nationally recognized, fee-only firm serving clients for over 30 years with more than $7 billion in assets under management. As a trusted advisor, Savant Wealth Management offers investment management, financial planning, retirement plan and family office services to financially established individuals and institutions. Savant also offers corporate accounting, tax preparation, payroll and consulting through its affiliate, Savant Tax & Consulting.

©2020 Savant Capital, LLC dba Savant Wealth Management. All rights reserved.

Savant Wealth Management is a Registered Investment Advisor. Different types of investments involve varying degrees of risk. Savant’s marketing material and/or rankings should not be construed by a client or prospective client as a guarantee that they will experience a certain level of results if Savant Wealth Management is engaged, or continues to be engaged, to provide investment advisory services nor should it be construed as a current or past endorsement of Savant Wealth Management by any of its clients. Please see our Important Disclosures.