![](/sites/default/files/2024-07/iStock-1182811599.jpg)
In this month's issue:
Prospecting For Gold
Mark Luschini
It is a rare circumstance that in presentations to a large group of investors, a question about the prospects for gold isn’t raised. In this context, it centers on whether it is likely to move higher or lower or warrants a position in a portfolio. Historically, gold has had an intrinsic quality, namely its rarity, that has served the precious metal well for thousands of years as a currency or store of value and in art or jewelry. Today, we know it also has broad industrial applications for which it is employed in medical, aerospace, automotive, and electronics fields.
Gold has captured a lot of attention as it rallied to an all-time high in May, even generating a buying frenzy of gold bars that were being sold by a large, well-known hypermarket. Subsequently, its price advance has cooled a bit, which begs the question of what lies ahead. Are the catalysts for gold still in place, or have other variables intervened that might undermine its investment utility?
Overblown Liquidity Concerns
Guy LeBas
Violent market moves—such as the +0.15% no-news selloff in interest rates on the final day of June 2024—are often chalked up to “liquidity.” There’s some truth to that statement. In the last several weeks, a few headlines have emerged on deteriorating bond market liquidity. Specifically, one measure of liquidity based on a Bloomberg index (albeit flawed) seems to be weakening. The broader issue, however, is that bond markets have grown, intermediaries have shrunk, and popular trades have become ever more crowded. Nowhere is that more evident than on quarter-end dates in which rebalancing billions of dollars gets jammed into a single hour of activity.
Lazy, Hazy, And Sometimes Crazy
Gregory M. Drahuschak
The second half of the year typically kicks off with golf courses and beaches occupying investors’ minds more than the performance of the S&P 500. The diversion away from the market, however, can be costly.
On average, July is by far the best summer month for stocks and the fourth-best month of the year overall. The S&P 500 in July posted a gain in 44 of the previous 74 possible months, with an average gain of 1.21%. The 9.11% gain in July 2022 was the best gain for the month.
You can read the full Investment Perspectives here.
The information herein is for informative purposes only and in no event should be construed as a representation by us or as an offer to sell, or solicitation of an offer to buy any securities. The factual information given herein is taken from sources that we believe to be reliable, but is not guaranteed by us as to accuracy or completeness. Charts and graphs are provided for illustrative purposes. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.
The concepts illustrated here have legal, accounting, and tax implications. Neither Janney Montgomery Scott LLC nor its Financial Advisors give tax, legal, or accounting advice. Please consult with the appropriate professional for advice concerning your particular circumstances. Past performance is not an indication or guarantee of future results. There are no guarantees that any investment or investment strategy will meet its objectives or that an investment can avoid losses. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. A client’s investment results are reduced by advisory fees and transaction costs and other expenses.
Employees of Janney Montgomery Scott LLC or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within. From time to time, Janney Montgomery Scott LLC and/or one or more of its employees may have a position in the securities discussed herein.