July 2019 Financial Markets Summary

Happy Independence Day!  As we turn the page to the second half of 2019, we pause to review a few facts about the 4th of July holiday.

When John Adams, Thomas Jefferson and Benjamin Franklin were signing the Declaration of Independence in 1776, there were only an estimated 2.5 million residents in the U.S.  Our democracy, capitalism, and technological advances have caused the U.S. population to skyrocket to over 329 million today.  These founding fathers would likely not even recognize their country today as it has grown to the 3rd most populous country with the largest and most liquid capital markets in the world.

As one of the wealthiest nations in the world, Americans love to celebrate and spend around this holiday season.  An estimated $6.8 billion is expected to be spent on food alone during this 4th of July holiday.  Over $1 billion is expected to be shelled out on beer and another $1 billion on fireworks.


It wouldn’t be the 4th of July without fireworks and American flags.  We declared our independence in 1776, but the world is much more interconnected today.  90% of all U.S. firework imports are from China along with $5.4 million of U.S. flag imports, most of which are made in China.  The trade tensions have been the headline for most of the year, but hopefully real progress can be made following the G20 summit.

Fisher Investments’ Ken Fisher recently quoted that we should be proud to be an American, but “don’t let patriotism rule your 401k.  You’ll miss a world of opportunity.”  While the U.S. stock markets have outperformed practically all other countries over the past ten years, economists and history would suggest that international stocks could lead the way over the next 3-5 years.  Be sure to own a globally diversified allocation to take advantage of this opportunity.

Lastly, 47 million Americans are expected to travel over 50 miles to celebrate the 4th with family and friends.  We wish everyone a safe and fun-filled 4th of July!

Asset Index Category Category Category 5-Year 10-Year
3 Months 2019 YTD Average Average
S&P 500 Index – Large Companies 3.8%        17.3% 8.4% 12.3%
S&P 400 Index – Mid-Size Companies 2.6%        17.0% 6.3% 12.9%
Russell 2000 Index – Small Companies 1.7% 16.2% 5.6% 11.9%
MSCI ACWI – Global (U.S. & Intl. Stocks) 3.3% 16.0% 6.0% 10.3%
MSCI EAFE Index – Developed Intl. 3.7% 14.0% 2.2% 6.9%
MSCI EM Index – Emerging Markets 0.6% 10.6% 2.5% 5.8%
Short-Term Corporate Bonds 1.5% 3.2% 1.6% 2.5%
Multi-Sector Bonds 3.1% 6.1% 2.9% 3.9%
International Government Bonds          3.7% 5.1% 0.3% 2.0%
Bloomberg Commodity Index -1.2% 5.0% -9.1% -3.7%
Dow Jones U.S. Real Estate 1.8% 19.2% 8.6% 15.3%


Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, strategy, or product or any non-investment related content, made reference to directly or indirectly in this newsletter, will be suitable for your individual situation, or prove successful. This material is distributed by PDS Planning, Inc. and is for information purposes only.  Although information has been obtained from and is based upon sources PDS Planning believes to be reliable, we do not guarantee its accuracy.  It is provided with the understanding that no fiduciary relationship exists because of this report.  Opinions expressed in this report are not necessarily the opinions of PDS Planning and are subject to change without notice.  PDS Planning assumes no liability for the interpretation or use of this report. Consultation with a qualified investment advisor is recommended prior to executing any investment strategy. No portion of this publication should be construed as legal or accounting advice.  If you are a client of PDS Planning, please remember to contact PDS Planning, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives.  All rights reserved.