Quarterly Investment Commentary as of July 1, 2015Submitted by Canty Financial Management on June 19th, 2015
Quarterly Investment Commentary as of July 1, 2015
So far in 2015, the Leading Economic Index continues to be positive. “The U.S. LEI increased sharply again in May, confirming the outlook for more economic expansion in the second half of the year after what looks to be a much weaker first half,” said Ataman Ozyildirim, Director, Business Cycles and Growth Research, at The Conference Board. “While residential construction and consumer expectations support the more positive outlook, industrial production and new orders in manufacturing are painting a somewhat more mixed picture.”
At CFM, we believe the fundamentals of the economy remain strong, and inflation should remain low for some time to come. The unemployment rate dropped to 5.5%, which is the lowest rate since 2008. The U.S. should continue to lead the World in economic growth, and our focus is to overweight in Large Cap Growth and Dividend paying stocks, including Technology, Health Care, Financial, and Cyclical sectors.
We recommend a diversified portfolio of stocks, and we also favor short-term bonds over long-term bonds because we anticipate an interest rate hike by the Federal Reserve Board in late 2015, or in early 2016.
Please give us a call at any time to discuss your situation, and your acceptable level of risk. You may speak with Bill Canty or Maureen Walsh at 518-885-3230 or 239-435-0090, with questions or concerns.