July 11, 2017 | Investment Review

Investment Review - July 2017

  1. U.S. stock indices rallied in June, based on upbeat economic news and corporate profit growth. The Dow Jones Industrial Average gained 1.6%, the S&P 500 was up 0.5%, and the Nasdaq Composite dropped 2.4%. International equity markets were slightly higher. The MSCI Europe Australia Far East Index (EAFE) dropped 0.4% and the MSCI Emerging Markets Index was up 0.5%.

  2. Volatility in the U.S. stock market is near an all-time low even as corporate profits have recovered from a year ago. Some investors are worried that the pace of hikes in the Federal Funds rate could further slow an already sub-par economic recovery. Risks to the markets include a policy error by the Federal Reserve, a global trade war, an economic slowdown in China and a military engagement.

  3. The Federal Reserve raised the Federal Funds rate by 25 basis points (100 basis points = 1 percent) in June. This widely expected move was the second hike this year and the third since December. The key will be whether economic data and corporate profits in the months ahead justify higher borrowing costs.

investment statistics

Sources: Bloomberg LLC, FACTSET, U.S. Commerce Department, Bloomberg Businessweek, IHS

* 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.

Click on the image below to view a printable and device-friendly PDF version of the July 2017 Economic Outlook and Investment Review for your convenience:

Investment Review PDF Version

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