Interest Rates

Though it arrives sooner than expected every year, the last week of August is upon us. In my mind at least, the close of the month has always felt like the formal end of Summer as the customary inflections of the season follow soon after. It’s a week that at every stage of life seems to provide us with a transition of some kind. The hot summer weather starts to wane, the sports seasons shift as your favorite baseball team makes a run for the playoffs

The last week of July was subsumed by a volatile market and a news cycle dominated by coverage of the Federal Reserve’s (FOMC) Wednesday decision regarding interest rates. While it was the second such meeting under new chairman Kevin Warsh, unlike his first meeting last month, sentiment this go around pointed to the real possibility of a rate hike heading into the week.

Entering the second half of the year, mid-July has arrived with its typical imperatives that come along with the apex of the summer to finalize vacation itineraries and (just maybe) relax a bit before summer ends, the kids go back to school, and the businesses that always seems to creep up late in the year arrives. At the same time it seems the news cycle has been anything but relaxing. Temperatures have spiked across the country (with a side of apocalyptic smog from Canadian

As midwestern skies turn sunny, temperatures warm, and children make their way home from school for summer break, it almost seems on cue that we see a meaningful break in hostilities and political developments in Iran.

June is around the corner and we approach the new summer season with Memorial Day ahead, vacation schedules planned, and pleasant weather in mind. So too, we conclude another positive earnings season for corporate America, with more than 80% of S&P 500 companies delivering upbeat earnings surprises with an average growth rate of nearly 28% .