Greece
We’ve all seen the headlines now. Unfortunately, I’m not referring to the smashing Broadway hit and critically acclaimed John Travolta movie Grease, but we can say that Greece is definitely experiencing some hot summer nights. Greece continues to keep the banks closed and are inducing capital controls in the attempt to come to an agreement on their debt with the European Central Bank (ECB) and the International Monetary Fund (IMF).
All funny business aside, Greece’s Prime Minister, Alexis Tsipras along with Christine Lagarde of the IMF and Mario Draghi of the ECB are among the cast of characters that will need to come together to structure an agreement surrounding Greece’s debt. With the citizens of Greece voting “no” to more austerity measures and the Euro, this may be the start of the “Grexit” or Greek exit.
Market Update – When Doves Cry
The stock market was fueled by continued global uncertainties that came to roost in the final weeks of the quarter. As a result the Dow industrials ended relatively flat up only.05% to 17,619.51, S&P ended up .28% to 2,063.11, the international markets as measured by MSCI EAFE ended up .62% to 5,137.91.
As if the headlines surrounding Greece weren’t enough, China’s stock market officially entered into Bear market territory during the quarter down over 20% from the recent high reached in early June. Japan’s economy is continuing to sputter along even after the launch of their $700B Quantitative Easing (QE) program from last October. And of course, there’s the US, where the talks of a rate rise, which could happen as early as this fall, will make the doves (who prefer easing) in the market cry.
In May of 2013, Ben Bernanke, head of the Federal Reserve, hinted that our QE program would be winding down. These comments sent the yields on the 10-year Treasury surging from 1.94% to 2.90% in just three months. Being mindful of a hawkish (tightening) move by the Fed, we are actively monitoring our investment portfolios to take advantage of the price movement of bonds as well as stocks, accordingly. We expect volatility to pick up from its current near historical lows.
The Knowledge Base
As you may know, here at Archvest our passion is to spread the knowledge of personal finance in practical ways to help others. Well, we have put this passion to work over the past several months and are excited to announce the launch of the Knowledge Base page on our website. The Knowledge Base page contains videos hosted by us, videos from trusted third-party websites as well as downloadable apps for your smart devices.
The videos are short clips ranging from 3 to 5 minutes discussing practical topics on personal finance issues, like understanding your credit score to making a spending plan. If you have not had a chance, take a look at the page and let us know what you think. In addition, if you would like us to post a video on a specific topic just let us know and we’ll make it happen.
Also, we’ve made a splash in the social media scene. Please follow us on Twitter, LinkedIn and like us on Facebook. We will continue to post new content, not only on our social media pages but on our Knowledge Base page as well.
Housekeeping Items
We’ve made a few updates to our reporting software, Black Diamond. If you have not already done so, please login and you’ll see the updated user interface. If you have questions on how to navigate Black Diamond, please give us a call.
In addition, this fall we’ll be bringing the Creole cuisine back! This year, we are proud sponsors of The Creole United Festival held on October 17th at Dunphy Park in Sausalito. Come join us for great food and fantastic music to support the Performing Stars of Marin music program. Please let us know if you plan join us for a day of fun at the park. Admission to the event is free.
We strive to provide the best experience for you. If you have any questions, comments or would like to discuss anything covered in our newsletter in more detail, please give us a call. Thank you for the continued support and confidence in our firm.
Eric Lai & John Wenzel | Archvest Wealth Advisors