July 2015 Recap

The Usual Suspects

Did you know that 2014 was the warmest year on record? Most of the U.S. enjoyed a cooler start for the summer this year, but right now it’s pretty hot for us in North Texas. Still, it's probably not a bad time to go somewhere even cooler in these last few weeks of the summer, a place like Europe where our U.S. dollar buys you more. Looking to the southern part of the Eurozone, great discounts are still available, whether you are considering a vacation there or investing in their markets which are crumbling like ancient architecture. But you won’t beat the heat. In this newsletter, we are going to spend most of our time reviewing last month's themes, as they truly still applied to July.

The default that launched 1,000 headlines

July 2015 Mid-month

Key Points and Market Recap • The drama in Greece may persist for years, but we believe widespread contagion remains unlikely. • The Chinese market volatility and economic decline are growing as issues that warrant investor concern. • Despite the risks, we think the outlook for U.S. economic growth, corporate earnings and equities remains positive.

June 2015 Recap

Drachmas, Dragons and Bears

The summer is usually a time to relax. School lets out, and you don’t have to deal with as much traffic. You might have already squeezed in a vacation or hosted a cookout or two, but the markets have not been so relaxed. Over the past three years both temperatures and blood pressures rose on different issues and news headlines. In 2013, stock and bond prices plummeted violently when the Fed hinted at the end of easy monetary policies. It was dubbed the “Taper Tantrum.” In 2014, it was both Russia “invading” Crimea and Ebola which shook stocks. This summer it’s the debt crises in Greece and Puerto Rico, and the unknown implications of China’s quickly cooling economy and possible stock market bubble. Let’s spend a few minutes to take a closer look at these issues.