Insights

July 10, 2018 | Investment Review

Investment Review - July 2018

  1. The major U.S. equity indices were mixed in June. The Dow Jones Industrial Average fell -0.6%, the Nasdaq Composite gained 0.9%, and the S&P 500 returned 0.5%. Investors are weighing the benefits of corporate tax cuts and strong earnings growth against the threat of a trade war.

  2. Strong S&P 500 earnings growth is expected to continue. Analysts expect earnings to grow by 19% in 2018 and 10% in 2019. Analysts are also growing more bullish, as estimates for 2018 and 2019 have increased since January of this year.


  3. Emerging market equities declined -5.2% in June. Concerns about a stronger dollar, the potential escalation of trade skirmishes between the U.S. and emerging markets trading partners, and China’s campaign to decelerate its credit growth have led to selling pressure in this asset class.

key investment statistics july 2018

Sources: Bloomberg LLC, FactSetU.S. Commerce DepartmentBloomberg Businessweek, IHS iSuppli

Disclosure: 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.


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