Second Quarter, 2015 Market Review and Outlook.

I hope everyone is enjoying summer.

Here are some key takeaways from Q2.  Please review the entire 38 page PDF (link below).

• Make sure to look a the updated 7 keys to success in 2015 on page 2.
• Q2 was choppy with slight positive gains for US stocks and international stocks.  Both bonds and REITs were down for Q2.
• The US dollar remained strong in Q2.  This currency impact will reduce earnings for many US companies.
• The FED signaled that it will likely begin to raise interest rates later this year but the increases are expected to be modest.  The ECB and Japan are engaging in quantitative easing to stimulate their economies.
• As you can see on slide 4, Greece has spent nearly half of the last 150 years in default on its debt.  A default on current debt is very likely.
• Now is a good time to rebalance your portfolio and make sure that your risk level is aligned with your long-term goals.
• As you can see on page 7 to 10 of the below PDF, the bull market is over 6+ years old and expected future returns may be lower for both stocks and bonds.  It is important to stay diversified, have a solid strategy and have discipline.  We have been 45 months without a 10% pullback.  This is the 3rd longest period without a 10% pullback (since 1950).  We may see more volatility when the Fed actually raises rates late this year or in 2016.
• If you hire an advisor to help manage your money, we believe that you should only hire a low-cost, fee-only advisor who is a fiduciary for you 100% of the time.  Please read our blog – The Pledge Most Advisors Won’t Sign to find out more.

Click here to review our in depth analysis — Q2-2015 Market Review and Outlook

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All the best,

Todd Moerman

303-549-4720