2nd Quarter Recap

by Derek Felske, Chief Investment Officer | Annex Wealth Management

U.S. Growth Rebounds In Second Quarter

Solid Absolute Returns

During the second quarter of 2017, the vast majority of global financial markets again posted solid absolute returns. In fact, large cap US stocks have now advanced for seven consecutive quarters. International stocks, which have lagged domestic issues since the global financial crises, posted even better returns.

We remain attracted to select international equity markets due to their attractive relative valuations, higher dividend yields, strong growth prospects, and favorable demographics.


Looking Ahead

As we enter the third quarter, we‘re encouraged that Wall Street second quarter earnings estimates anticipate solid growth, particularly for large cap multinationals and energy companies. This is significant because we’ll need to see earnings growth materialize for U.S. stocks to move higher from current levels.

Despite the positive fundamental backdrop, there are risks in the financial markets that we continue to monitor, including a surge in inflation that causes the Federal Reserve to raise interest rates faster than market participants expect, a trade war, the potential for conflict in Syria and/or North Korea, and delays to the administration’s pro-growth policies.

Our Investment Committee continues to believe a balanced portfolio is the most prudent course with an eye towards managing risk, taking advantage of valuation disparities, monitoring the geo-political environment and focusing on fundamentals.


Thank You

We‘d like to thank our loyal clients who have recently referred friends and family to us. It‘s a great honor and the highest compliment. We always enjoy meeting friendly and successful people, and referrals remain a critical source of growth.

If you consider Annex Wealth Management a good fit for someone you know, please let us know. We‘d be happy to discuss their needs.

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Advisory Services offered through Annex Wealth Management®, LLC. Securities offered through H. Beck, Inc Member FINRA & SIPC. Annex Wealth Management®, LLC and H. Beck, Inc are separate and unrelated companies. This site has been published for residents of: AZ, CA, FL, IL, MN, NC, SC, TN, TX & WI ONLY. By entering you certify you are a resident of one of those states. All information herein has been prepared solely for information purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security.


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