Financial Market Review | June 2017

The market is at an all time high as we head into the last half of the year. This may come as a surprise to some, especially considering the following three things:

  1. The Trump investigations

  2. The current situation in North Korea

  3. The Federal Reserve giving us our 2nd interest trade bump this year

We said back in January that we could expect 3 interest trade bumps this year, so look for a least one more by year-end. We’ll likely get 2 or 3 more bumps in 2018, as well.

Despite the potential for setbacks, the market is surging.

Unemployment figures are good. The housing market, which is a huge catalyst for the economy,  is as good as it’s been since back in 2006 and 2007.

Although the market is doing well, we’ve probably reached our peak for the summer. Don’t be surprised to see things slide a little bit. Even so, we’re slated to see a 12% - 15% return on our aggressive portfolios between now and year-end

Let’s take a look at some of the individual stocks our firm said we liked back in January.

Tesla

Tesla was our number one pick at the beginning of the year. In January, tesla was sitting at $216/share. We speculated that it would hit $300/share by the end of 2017. Surprisingly, Tesla is almost at $400/share right now. Our guess is that by year end, this stock will be up to $450/share.

Apple

We like Apple very much. Apple was our second pick at the beginning of the year and continues to impress us. Apple has a new product and cycle coming up here in the next 2 or 3 months, so this stock will continue to remain high. Apple currently sits at $150/share.

Amazon & Alibaba

Both these stocks are doing well. Amazon is currently at $1024/share and Alibaba sits at $151/share.

Bank of America

Holding up the rear of everything is Bank of America. Banking stocks have been a little quiet this year. But as interest rates filter back into the economy, we believe the banking sector gives of one of the greatest values out there. Bank of America is at $23/share.

We made some adjustment to the energy sector this year, carving about 10% off. We still like energy, but at the time, felt like this sector was heading lower. Since then, energy has headed about another 3%-4% lower. There may be some better buying opportunity as the summer months progress to take a position back in the oil and gas sector.

All in all, it’s been a great year so far. We’ve seen the highest for the summer and rallies should start to continue again toward the end of this year.

We look forward to giving you an update in another 30 days. Of course, feel free to reach out to us directly with any questions.

Best,

Sloy, Dahl & Holst, Inc.