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Solaris Asset Management Market Commentary July 2017

By Tim Ghriskey

31 July 2017

Economic data continued to fluctuate during the second quarter, and that was generally favorable for equities. Inflation softened as energy prices declined, wage growth remained weak, and on-line price discounting spread. GDP growth remains relatively steady, but below potential. The economy needs a degree of inflation to help create growth, since it acts like grease to accelerate spending. At the same time, with inflation below the Federal Reserve Board’s 2.0% target, interest rate hikes are more likely to be measured and modest, which should support the economy. The potential for economic improvement has kept the stock market moving higher.

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