July 11, 2019 | Investment Review

Investment Review - July 2019

  1. U.S. stocks rallied in June as bulls adopted the view that the Fed was moving towards a more accommodative stance on interest rate policy. Investors also found bargains in individual stocks created by May’s trade war-related sell-off. For the month, the S&P 500 gained 6.9%, the Nasdaq rose 7.4%, and the Dow picked up 7.2%.

  2. Analysts expect S&P earnings growth to continue, calling for 3.6% growth in 2019 and 11.0% in 2020. However, some economists believe that these estimates do not reflect the impact of a trade war. There would likely be downside to these estimates if trade negotiations between the U.S. and China break down.

  3. International stocks also turned in a strong showing in June, although they did not keep pace with their U.S. counterparts. The MSCI EAFE Index rose 4.1% and the MSCI Emerging Markets Index was up 4.1%. Among the major EAFE markets, the laggard was Japan, which gained only 2.8%.

key investment statistics july 2019

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

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.

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