Market Review for July 2016
Goodbye BREXIT, hello record highs!
July had the potential of being a negative month as per what transpired in the UK in the previous month. Instead, it was a very good month overall for the markets and it also provided a great indicator that investor’s risk appetite has returned with technology being the most improved sector on both sides of the border.
The UK announced that it has cut rates to 0.25%, in addition to a stimulus package to help reduce the possibility of a future recession. The European Central Bank “ECB” decided to hold its rates steady and indicated that they will wait until September’s economic numbers before deciding on any action. Japan provided a plan for additional stimulus, but it did not meet the size that investors have hoped for. Lastly, the US Federal Reserve made not changes but did reinforce that a 2016 rate hike is still on the table. A strong jobs report would help its claim to raise rates.
Gold and silver continue to rally and both made new 52 week highs, unlike oil prices recently, as they moved lower due to supply concerns. A good support level is $40 and that number will serve the greatest impact if it holds.
2016 is slowly becoming a better year, as compared to what we saw at the start of the year. Some analyst are predicting oil to be at $70 by the end of 2016, which we find is very ambitious, but if we get even close to that number, the markets will undoubtedly have a pretty good year.

The most notable developments this month have been the following.
United States
Global
Eye on the Month Ahead
– Will there be continued volatility as volume is expected to be light?
– We are seeing some impact with the Brexit vote, but will UK’s stock market continue to rally?
– Has oil have enough strength to stay above $40 and move upwards?
– Can the US maintain it safe haven status among investors for the remainder of the year?
– Will the upward price momentum in the markets will continue over the summer months?
We continue to believe having a globally balanced portfolio with a focus on low volatility will help lower overall investment risk while having the ability to capitalize on investment opportunities.
– We are seeing some impact with the Brexit vote, but will UK’s stock market continue to rally?
– Has oil have enough strength to stay above $40 and move upwards?
– Can the US maintain it safe haven status among investors for the remainder of the year?
– Will the upward price momentum in the markets will continue over the summer months?
We continue to believe having a globally balanced portfolio with a focus on low volatility will help lower overall investment risk while having the ability to capitalize on investment opportunities.
Economic Calendar
Please do not hesitate to contact us if you have any questions or would like our team to review your investment strategy.
Best Regards,
Konrad, Justin and Merriel
Echelon Wealth Partners – LK Wealth Management Group
Sources: Market Q, Bloomberg, Reuters, Globe and Mail, Wall Street Journal, Huffington Post, Forbes, Goldman Sachs
Disclaimer: Echelon Wealth Partners Inc. is a member of IIROC and CIPF. This document has been prepared as a monthly market update and does not contain any recommendations for any particular investment. It is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any investment decision should be based on your own risk tolerance and investment objectives and reviewed with an investment advisor. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. The data used in this document is from various sources and is believed but in no way warranted to be reliable, accurate, complete and appropriate.