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QUARTERLY REPORT: Second Quarter 2013

July 16th, 2013

It has been a rollercoaster of a spring for the market and the economy, but, as a whole, what we are seeing occur throughout the financial marketplace is positive. On June 19th, Federal Reserve chairman Ben Bernanke and the Federal Open Market Committee (FOMC) made statements regarding the tapering of their bond buying program. They cited positive economic indicators as the reason for the tapering, which may occur as early as this year.

 

The financial markets have reacted with much volatility over these statements because of the imminent fear of rising interest rates. Interest rates will need to rise, which, for the long-term, will be a healthy indicator of a strong economy. However, for the short-term, it will make for a tough bond market. Unemployment has risen slightly, but it is on the decline for the year adding about 200,000 jobs per month.

 

As we look at the different components of the global financial markets, we see that large stocks have outperformed small for the quarter, and large value stocks have outperformed both small and large growth stocks. US value stocks have outpaced US growth stocks for the quarter, and US stocks continue to fare better than international stocks.

 

Even with the short-term volatility we are seeing, the broad US market remains up for the year with low double-digit returns. As your fiduciary, the Petersen Hastings team is here to keep you on course to your goals.

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