Happy Summer and how about this market/economy! The average stock in the S&P 500 is only up around 5%, yet the index is up 14.5% year to date. As I’ve been discussing with many of you since January, this period reminds me a lot of the late 90’s where a handful of technology stocks pulled the market to new highs. The good thing is that these “magnificent 7”(they have named) have solid earnings. That’s not to mean they won’t fall or aren’t overvalued compared to their growth in earnings. At SWM, our portfolios(like the 90’s) will continue to diversify our clients to meet long term goals and avoid getting over-diversified towards one sector or group of stocks. On the bond front, interest rates rose a bit in the second quarter and rates continue to be strong for us. We continue to work daily to help you keep your cash working at these good rates at Janney.
I’ll leave you a thought, every decade has it’s own set of champions that have dominated the market. Eventually these leaders get dethroned due to capitalism and technology advancement. This dethroning can wreck solid long term financial gameplans.
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