On May 22, 2018 SMC Investment Sub-Club discussed the following major quarterly themes in the J.P. Morgan Asset Guide to the Markets. (1) U.S. economy: Short term acceleration, long term moderation. Federal debt is expected to rise to roughly 100% of GDP by 2028. The debt issue is a long term problem, not a short term crisis. (2) Fixed Income: Flexibility in a rising rate environment. The Fed will continue to gradually hike interest rates. Changes in short-term rates will work along-side balance sheet reduction to normalize monetary policy. (3) U.S. equities: Rising rates and the earnings safety net. A sharp rise in rates led to a spike in volatility this year, but fundamentals remain intact. Strong 2018 earnings should act as a safety net. (4) International equities: Not a one hit wonder. For the first time in 10 years, we are seeing a sustained and synchronized uptick in global growth. Valuations in international markets are still at average suggesting that multiples can still drift higher, an additional contributor to returns.
G.P. War Memorial, prior to SMC meeting. Chairman, Tom Bidigare (313-977-0709) and Treasurer, Don Stanitzke (313-886-0143).
Note that the Investment SubClub will meet now on the fourth Tuesday of the month and in a new location, the Crystal Ballroom, eliminating the room fee.
All SMC Members are invited to attend along with our Presenter, Blake McLellan, and the regulars: Tom Bidigare, Dennis Hickey, Den-ver Higley,Al Sauter, Bill Holdman, Carson Gruenwald, Ched Fine, John Snyder.