During the first quarter, the media was all over why the market had corrected. Funny how quiet they have been lately, but lots has been happening!
Three significant trends have occurred during the second quarter.
First, a continuance of the multiyear story of Tech is Great. Just pull up a quote of your favorite tech stock and you can see this.
Second, the resurgence of small cap stocks! This is a very pleasant surprise, and I think quite healthy for our market. Visualize a rubber band that you stretch vertically, out to its limit. That band is either going to break or retract. In February, that rubber band (yes, large cap tech stocks) retracted some. But then, that band started pulling the small cap stocks up, allowing them to catch up to their big brothers and sisters. This is very healthy if this market is going to continue upward.
Third, the dollar has rallied. The dollar has been in a multiyear weakening cycle that has been great for international investing, especially for emerging markets. The rally in the dollar has brought it back to where it was about a year ago. I am watching this quite closely. If the dollar continues to strengthen, then I will be cutting back in my international holdings.
Economically, we are still experiencing some of the lowest unemployment rates most of us can remember. The biggest concern I hear from my business owner clients is they cannot find good people to hire. They are all working!!!! The good thing about a strong economy, is the Fed can slowly raise interest rates, which we will need during the next down cycle so the Fed has room to provide some stimulus.
That’s it for now. As always, please call with any questions on how any of these issues effect your portfolio. Go and enjoy that summer barbecue?
Thank you for your continued Trust and Confidence.
Gregory G. Riggs, CFP
Accredited Investment Fiduciary
On January 2, my oldest son, Kevin, decided to join Riggs Wealth Management. He is learning and asking all the right questions. It sometimes drives me crazy, but he is causing me to rethink how I have done things, and that is good. It is a joy to have him with me and I look forward to watching him learn and grow.
Securities and Advisory Services offered through KMS Financial Services, Inc. Member FINRA/ SIPC
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. This information is for educational purposes only.