Q2 Recap in Pics

We are trying something new to convey our view of the world to our readers.  We have heard feedback from investors that industry market commentary is too long, confusing, and not relevant.  This is our attempt to make Pure Portfolios market content informative and easy to digest.  If you're having trouble viewing the slides.  We recommend viewing the PDF version here.

Note: Pure Portfolios clients receive a full report uploaded to their online portal and mobile app. The following is a condensed version.

International stocks (orange) had a strong Q2.

Despite call for higher yields, fixed income continues to hang in there.

Acting on financial news can be hazardous to your wealth.  Fake news:) ?

Source: Meb Faber

The S&P 500 has been "overvalued" for the better part of three decades.

Source: Meb Faber

Brexit?  Meh...

Impeached?  Meh...

 One impeached president with another embedded in scandal?  Meh...

Populist uprising?  Meh...Politics & Investing do not mix

Fed hikes have preceded every U.S. recession since mid-1970s (gray bars indicate recessions).

Low oil = not inflationary 

Fed tightening into weakness?

Weak GDP = no margin for error to absorb a policy error or economic shock

Every interest rate hike cycle since 1987.  We are well below the average levels of inflation and growth.

Bond yields are not signaling robust growth.  U.S. 10yr yield flat since the Fed started increasing rates. 

Our tactical tilts added value in 2Q.  Gold is positive year-to-date.