Will Trade Conflict Impact U.S. Economic Growth?
Last week saw global trade take center stage as concerns continued to build around the increasing trade conflict between the U.S. and China. I expect the start of this week will focus on China’s upcoming investment rules and speculation about what will happen before the July 5 effective date of tariffs.
On Friday, the markets will receive some key economic data with the release of the May Personal Consumption Expenditures and the University of Michigan Sentiment Survey. I expect both to show continued strength and optimism for the economy, as well as a small uptick in prices. After Friday’s 5% price increase due to concerns about OPEC’s follow through on production increases, keep a close eye on oil this week.
I expect the markets to end the second quarter relatively quiet, with stocks posting solid gains and bond yields inching higher.
Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice. The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete. Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements. Actual results may differ significantly. Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.
Investing involves risk, including possible loss of principal. Past performance is no guarantee of future results. All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.
High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.
All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.
Copyright © 2015 Penn Mutual. All Rights Reserved. All trademarks are the property of their respective owners.Read Less...