Investment Review – September 2016

September 6, 2016 Investment Review
  1. The major U.S. equity indices were essentially unchanged in August despite reaching all-time highs mid-month. Over the past 30 days, the Dow Jones Industrial Average and S&P 500 were flat while the Nasdaq Composite increased just +0.6%. The markets may be temporarily range-bound awaiting more evidence of economic strength.

  2. Expectations for higher U.S. interest rates have resulted in the dollar strengthening. A stronger dollar may pose a headwind to forecasts for higher revenues and earnings next year.  Analysts estimate S&P 500 revenue will grow about 6% in 2017 after increasing less than 2% this year.  Earnings for 2017 are, likewise, expected to increase nearly 14% year-over-year.

  3. The Bank of England (BOE) cut its benchmark interest rate to 0.25% from 0.50%, an historic low. The BOE stated the economic growth outlook for 2017 had “weakened materially” even while recent economic data has positively surprised.  Central banks around the globe have employed unprecedented monetary easing measures to counter slowing growth.

investment statistics

* This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.

For a printer-friendly copy of our Economic Outlook and Investment Review for your viewing convenience, CLICK HERE.

If you would like to receive your copy of the Economic Outlook and Investment Review monthly in the mail, call Ed Sullivan, Vice President, at 617-557-9800, or email him at esullivan@welchforbes.com.

Make sure to bookmark our Perspectives webpage so you can stay up to date with the most recent FREE weekly Welch & Forbes insights, announcements, and content. To receive our monthly email digest, simply enter your email address in the banner on this page.


 Does your investment portfolio match your objectives?

Do you understand your holdings?

Is your estate plan current?

Have you created a financial plan?

Introducing our Wealth Planning Suite

wealth planning suiteGet started organizing, understanding, and controlling your wealth with a complimentary Initial Consultation and Portfolio X-Ray©, followed by an Estate Plan Review and Financial Plan when you become a client.

  • This field is for validation purposes and should be left unchanged.

Includes our Initial Consultation Portfolio X-Ray© Estate Plan Review Financial Plan



*There is no fee for the Initial Consultation or Portfolio X-Ray© for prospective clients. Portfolio X-Ray© is a Morningstar product that Welch & Forbes maintains a license for its use. The Estate Plan Review and Financial Plan are provided only to clients.