This has been a difficult year in the market; however: this quarter's returns were favorable, although slight.
Year to date, the moderately conservative portfolios came in at .25% and the moderately aggressive accounts came in at .8%. I believe the moderately aggressive portfolios were higher, due to equity market exposure. Although no one sector performed particularly well, these portfolios had a reduced exposure to bonds, and as a result did fare slightly better.
The numbers as of June 30, 2015
S&P 500 0.57%
Russell 2000 0.03%
Please be advised that the figures above are for general information purposes and that no two portfolios are identical. Additionally, risk and time horizon are specific to each individual.
From an economic standpoint, the dollar is indexing higher against other traded currency. The 10-year treasury is down year to date, -.68%. By comparison, the 2-year bond is yielding .10%, the 5 year yield is -.75% and TIPS (Treasury Inflation Protected Securities) are down -1.06%. Floating rate bonds and high yields are offering slightly better yields at .88% and .65% respectively. REIT's are also in negative territory, but they do offer an attractive yield, which will compel me to hold these investments at this time.
U. S. consumers are still spending (particularly on new autos), employment is recovering and the housing market has hit a 10-month high.
The corporate sector is strong, as a result of healthy balance sheets and lower borrowing costs.
I do anticipate the markets to remain flat over the summer and then see some growth in the fall, particularly in the oil and gas industries which are at a current year low.