HFG Perspective: July

July 1, 2014

It is hard to believe that we are already at the halfway point of the year. Time does fly when we are out enjoying life!

While stocks aren’t flying high like they were in 2013, we still saw advances and the occasional new all-time market high in the first half. Given last year’s robust returns, stocks are generally where we expected them to be this year. Both U.S. and international stocks have posted mid-single digit returns in the first six months of the year, but the path we took to get those returns wasn’t a straight line.

As we normally see, there are always a variety of news headlines that could potentially move markets. In the first half of 2014, abnormally cold weather was a big source of volatility.

The cold weather not only froze most of the Eastern U.S., it froze the economy. In the first quarter, the U.S. Bureau of Economic Analysis now estimates that the economy decreased at an annual rate of 2.9%. Fortunately, after the snow melted, so did the decrease in economic activity. Economic indicators like home sales, manufacturing production and retails sales all suggest that economic activity in the second quarter was strong.

It is nice to see that investors can keep perspective on things like the weather. Normally when investors see that Gross Domestic Product (GDP) is down in a quarter, investors begin to worry and calls for a recession begin. With everyone from the Federal Reserve to the talking heads on news programs pointing to the cold weather, the sizable decrease in GDP was taken in stride and the markets continued their advance.

While we don’t know what news headlines the second half of the year will bring, we do believe that our focus on using a well-tested, disciplined investment strategy will continue to benefit investors as it has in the past.



Asset Allocation
Investment Review Selection
Portfolio Management
Risk Analysis Management
Tax Impact Analysis
Asset Transition Analysis

Copyright © 2017. HFG Wealth Management, LLC. Investment advisory services offered through HFG Wealth Management, LLC – An independent Registered Investment Advisory firm registered with the SEC. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Therefore, any information presented here should only be relied upon when coordinated with individual professional advice. [ more disclosures ]