What’s Happening

A lot has happened since my last Bottom Line. First we have moved our McKinney address to:

7209 Millard Pond Drive
McKinney TX 75071


206 South Kentucky Street
Suite 201
McKinney TX 75069

We still have our Dallas office at:

16660 North Dallas Parkway
Suite 2200
Dallas TX 75248

You can mail to either address.

What else is happening?

Here we are at the heart of earning season. In the next three weeks we will see just how well companies have performed the first half of this year. Expectations are high from the majority of analyst. Today the markets ended flat with the S&P 500 squeaking out a 0.18% gain.

However, there were more stocks up than down. This is important because the overall up or down of the market is much harder to determine today because of the weighting of stocks in varying indices. For example the NASDAQ can show a day that is up 0.28% but actually there were many more NASDAQ socks down than up. This is because Apple, Google, Amazon, Netflix, all went up and this carried the index. This will change in coming weeks as earning reports start to flow in. 1,245 companies report their profits or losses this week alone.

The economy is as strong as it has been in 10 years. Just about every economic report is better than the previous report. We will get 2Q GDP report this Friday. Estimates are mind blowing. The latest estimate is a GDP growth of 4.2%. also we are expecting to see a huge jump in consumer spending of 2.9%. When people have jobs and are confident in keeping those jobs they spend money. Its really that easy.

Bottom Line

The Bottom Line is this. The economy is firing on all cylinders, interests rates are still t historic low levels and unemployment is at a 10 year low as well. With a strong GDP report combined with great corporate earnings I am expecting the market to rally strongly through year end. No recession this year.

My concern is still an over aggressive FED raising rates too much too fast and a yield curve that goes inverted. Only time will tell and we are still closely watching.

Your Boring Money Manager,
Fritz Mowery
Mowery Capital Management

We manage risks first
Then we buy quality
And only then do we seek to provide a reasonable return

At the time of this writing:
Dow Jones 25,044.29
S&P 500 2,806.98
Two Year Treasury Yield 2.64%
Ten Year Treasury Yield 2.96%
Thirty Year Treasury Yield 3.10%
Oil $67.72 bbl

I would really like to hear from YOU. If there is any topic or issue you would like me to comment or have any question I can research and answer please email me at fritz@mowerycapital.com and I will include it in the Bottom Line. I will keep your name confidential.

Disclosures and Notices

Sources: The Capital Group. Zacks, Seeking Alpha, CNBC, CNBC guest and contributors, Jim Cramer, Wall Street Journal, Investor’s Business Daily, and Financial Times. Special thanks to Wikipedia and MarketWatch for historical facts. If I have inadvertently missed any other sources please accept my apologies. No assurance can be made that profits will be achieved or that substantial losses will not be incurred in connection with any investment. All investments involve varying degrees of risk including loss of capital. This information should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation of any individual investment or strategy. PAST PERFORMANCE IS NO GUARR ANTEE OR INDICATION OF FUTURE RESULTS

This report, is furnished on a confidential basis to the recipient, does not constitute an offer of any securities or investment advisory services. This presentation is intended exclusively for the use of the person to whom it has been delivered by Mowery Capital Management, LLC, and it is not to be reproduced or redistributed to any other person without the prior consent of Mowery Capital Management, LLC. Past performance of any investments described herein is for illustrative purposes only and is not necessarily indicative of future results. Opinions and estimates offered herein are subject to change as are statements about market trends.

This report is confidential and has been prepared solely for the use of the intended recipient, and may not be reproduced, distributed or used for any other purpose without the prior written consent of Mowery Capital Management, LLC (“MCM”). The information contained in this presentation is proprietary and confidential and may contain commercial or financial information of MCM and/or its affiliates. The information presented is intended to be a summary and for information and preliminary discussion purposes only. This presentation is not intended to be an offer to sell or the solicitation of an offer to purchase any particular security or investment product. Financial information contained in this presentation is unaudited and remains subject to change.

Past performance of any investments described herein is for illustrative purposes only and is not necessarily indicative of future investment results and it should not be assumed that investments made by MCM in the future will be profitable or equal the performance described herein. Opinions and estimates offered herein are subject to change as are statements about market trends. Accordingly, no prospective client should make any investment decision solely on the basis of the information contained in this presentation. This presentation is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are strongly urged to obtain professional guidance from their tax, accounting and legal advisers in evaluating all of the tax, accounting and legal implications and risks involved in MCM’s investment strategy.
Investments involve a high degree of risk, and there is no guarantee that MCM, your investments or any other person will achieve their investment objectives. There can be no assurance that any account managed by MCM will achieve comparable results or be able to avoid losses. Actual returns will depend on, among other factors, future operating results, the value of the assets market conditions at the time of disposition, any related transaction costs, and the timing and manner of sale. Any statements regarding future events constitute only subjective views or beliefs, should not be relied on, and are subject to change due to a variety of factors, including fluctuating market conditions, and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond the control of MCM. The information contained herein does not constitute any representation or warranty with respect to MCM, and no person has been authorized to make any such representation or warranty.

By | Published July 24, 2018
Posted in The Bottom Line |