Market Update for August 31st, 2017
By Keith Maderer
While Hurricane Harvey had the turbulent winds and rain blowing sideways across Texas and Louisiana, the market decided to do the same thing during the month of August. Most of the major averages went up, down and ended pretty close to where they started.
The only mild exception was the Nasdaq Composite which was up… then down and closed up about 1% over the last month.
Hurricane Harvey has been devastating on the cities of the gulf coast and our prayers and thoughts are with all those that have volunteered to help with the rescue and recovery efforts. The economic impact of Harvey is still unknown, but we can expect it to be significant. Some sectors will benefit like housing, home repair and the labor market. But others, like the insurance sector will experience a negative impact which should not be too excessive as they have disaster scenarios built into their financial reporting.
Ballistic Missiles, Rhetoric and Geo-political concerns have been flying in Korea, Japan and the middle east. While these create more volatility from day to day, they generally do not have a lasting impact in the long run. Most believe that Russia, Syria, Iran and North Korea are just pushing to see where the limits are within the new Trump administration. The news channels and the price of Gold love the craziness, but we are all hoping things will settle down and become more constructive for world economics and security.
Good Jobs Reports, upbeat economic data and hopes of tax reform have kept the markets looking stronger than expected during the summer months. For the first time in many years, we are seeing the economic indicators point to a slightly stronger recovery and economic growth. This has helped over the summer and should potentially be good for a stronger market performance into the holiday season and year end.
We are monitoring the markets and economic activity closely. If any changes are necessary, we are prepared to upgrade and execute the needed trades. If you have any questions, or would like to schedule an appointment, please feel free to call us at 716-662-4470.