- The major U.S. stock indexes declined in August. The Dow Jones Industrial Average fell by 1.7 percent, the S&P 500 was down 1.8 percent and the Nasdaq Composite finished the month down 2.6 percent.
- Treasury yields accelerated their three-month decline as uncertainty caused investors to seek safe havens. The 10-year Treasury yield fell to 1.5 percent, widening the gap between the three-month Treasury bill. The 10-year Treasury yield also fell below the 2-year rate, a phenomenon viewed by economists as an important recession prognosticator. The 30-year Treasury fell to a new record low.
- Currency outflows pushed the Chinese yuan below the key 7-to-the-dollar level for the first time since 2008. The U.S. labeled China a currency manipulator, signaling an escalation in the trade conflict.
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 email@example.com.
Make sure to bookmark our Perspectives webpage so you can stay up to date with the most recent weekly Welch & Forbes insights, announcements, and content. To receive our monthly email digest, simply enter your email address in the banner on this page.
Access your complimentary Wealth Planning Suite
Includes your √ Initial Consultation √ Portfolio X-Ray© √ Estate Plan Review √ Financial Plan
Estate Plan Review
*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.