Global Investment Outlook and Strategy
September 11, 2018
Better-than-expected corporate earnings and positive U.S. economic momentum helped propel domestic equities higher in August, with a number of indices reaching all-time highs during the month. Positive portfolio exposure to higher interest rates, capital spending, and/or the U.S. economy remain major investment themes and growth stocks continue to outperform value counterparts. The S&P 500 Index generated total returns of +3.26 percent in August and +9.94 percent year to date. Fixed income portfolio returns were positive in the month and slightly negative year to date due to rising interest rates, which negatively impact the price of fixed income securities. The U.S. midterm election in November will likely contribute to increased market volatility over the next couple of months, which may be intensified by elevated trade tensions with China should President Trump follow through on threats of additional tariffs. The risk of specific emerging market troubles spreading to major economies appears limited and the benefits of recent policy easing in China may carry through to other emerging markets. Nonetheless, we anticipate that domestic equities will continue to outperform international peers due robust U.S. corporate earnings and the economy’s “safe haven” attributes. Leading macro indicators remain expansionary and the ISM Manufacturing PMI recently reached its highest level since 2004. However, inflationary pressures are mounting and year-over-year comparisons will become more difficult heading into calendar 2019 for a number of industries, underscoring the importance of picking stocks of companies with pricing power and defensive/growing end market demand.
For more details, including a longer discussion on the possible threat of global asset bubbles, please see Sit Investment Associates’ July 2018 Global Investment Outlook and Strategy paper. Click here: Global Outlook and Strategy (Adobe Acrobat) or e-mail us at: email@example.com.
MMAF Has Awarded Over 16,500 Grants
Since its inception in 2005, Minnesotan’s Military Appreciation Fund (MMAF) has awarded over 16,500 grants totaling over $10.5 million to Minnesota military personnel and their families. MMAF is a non-partisan, non-political 501(c)(3) non-profit corporation. It is a statewide fundraising initiative by the citizens of Minnesota. Its mission is to say “thanks” to Minnesota service members and their families by providing cash grants to those who are making sacrifices in the defense of our freedoms in combat zones around the world.
The tragedy of 9/11 compelled the late Eugene C. Sit, founder of Sit Investment Associates Inc., to create MMAF in order to thank and give back to Minnesota service members. Sit Investment Associates Inc. continues to support the efforts of MMAF.
To donate and learn more about Minnesotans’ Military Appreciation Fund, please visit the website at www.thankmntroops.org.