A Look Ahead
Worries keep economy moving. In fact, in many ways, the worries have helped keep the economy moving. Lower interest rates are likely to help revive a weakening housing market and help consumer spending growth keep going. Lower oil prices, prompted by growth fears, also put money into consumers’ pockets. For all the worries, to some extent these problems solve themselves—another reason to be less concerned going forward.
Fundamentals remain solid. As we look into the rest of the year, that is the real lesson of the second quarter: as long as the economic fundamentals—hiring and confidence—remain solid, the headline risks will stay just that instead of turning into bigger problems. It was a good quarter overall. The likelihood is that trend will hold for the third quarter, despite the headlines.
Brad McMillan is the chief investment officer at Commonwealth Financial Network.