Investment Review – July 2018

July 10, 2018 Investment Review
  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

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