Domani Wealth Offices Closed June 4th                                                                    

Domani Wealth offices will be closed on Tuesday, June 4, 2019 for team members to participate in a training session. If you have an urgent matter and need assistance on this day, please contact your advisor directly via cell phone or email.

We appreciate your understanding.

2019 Q2 in Review and Looking Ahead

Building on the first quarter’s momentum, the capital markets continued their upward trend during the second quarter.  Despite a pullback in May due to global trade concerns, falling oil prices, and subsequent global growth concerns, the capital markets quickly recovered and are showing positive returns on a year-to-date basis.  So far this year, both equity and bond markets are moving together on an upward trend.

US Economy and Markets

Investors have been keeping a watchful eye on US economic growth and the actions of the Federal Reserve.  Domestic economic data continues to give mixed signals, with some areas showing strength and others showing signs of slowing.  Employment data and wage growth remain positive.  The consumer also remains strong with healthy balance sheets and elevated savings rates.  Inflation has remained persistently low.  Conversely, US manufacturing data suggests new orders are slowing, and global trade concerns continue to weigh on the prospects for future growth.

The Federal Reserve left interest rates unchanged at both of their meetings in the second quarter.  Their commentary after the June meeting was viewed as “dovish”, indicating they are poised to support the US economy with future interest rate cuts if growth slows.  Although only a minority of Fed officials believe a rate cut will be necessary in 2019, the market is anticipating a rate cut may come as early as late summer or fall.  While investors wait to see what course of action the Federal Reserve will take, their stance is fueling gains in the capital markets.

Non-US Economies and Markets

 From a global perspective, economic growth remains positive, albeit at a slower pace.  Like the US, global central banks are poised to provide further monetary stimulus to spur growth if needed.  However, inflation around the globe remains stubbornly low, posing somewhat of a challenge for economic policy makers.

Outside of economic data, several global headlines continue to pose risks to the capital markets.  US-China trade talks continued throughout the quarter.  After negotiations broke down in May, Trump and Xi exchanged tit-for-tat tariffs, which spurred market volatility.  Also, Brexit continues to loom in the future, with the EU extending the deadline for Great Britain’s departure to October.  Theresa May resigned as Great Britain’s Prime Minister after her Brexit plan did not gain Parliament’s approval after multiple votes.  This leaves the path to Brexit unknown as Great Britain chooses a new Prime Minister to deal with the situation.

What Does This Mean for You?

The markets have shown resiliency this year, partly driven by supportive statements from central banks in the face of potentially slowing economic growth.  However, risks remain on the table such as lofty market valuations, global trade concerns, and geopolitical developments.  As always, we encourage a long-term perspective, prudent asset allocation, and appropriate diversification.

With one half of the year behind us, it may be a good time to review your financial picture and ensure you are positioned appropriately.  Have your financial goals changed?  Has your risk tolerance or time horizon changed?  Do you have adequate cash reserves for future spending needs?  If you have questions about your portfolio or would like to meet and review your financial picture, please call our office for an appointment.

 

Important Disclosure Information

Domani Wealth, LLC (“Domani”) is an SEC-registered investment adviser with its principal place of business in Lancaster, Pennsylvania. Domani may only transact business in those states in which it is notice-filed, or qualifies for an exemption or exclusion from notice-filing requirements. This communication is limited to the dissemination of general information pertaining to its advisory services. Accordingly, this communication should not be construed by any consumer and/or prospective client as Domani’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice. Any subsequent, direct communication by Domani with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Domani, please contact the SEC or the state securities regulators for those states in which Domani maintains a notice-filing. 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 the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Domani, or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this communication serves as the receipt of, or as a substitute for, personalized investment advice from Domani. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Domani is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Domani’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a Domani client, please remember to contact Domani, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Domani shall continue to rely on the accuracy of information that you have provided.

 

 

PLEASE SEE ADDITIONAL IMPORTANT DISCLOSURE INFORMATION

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