The month of July finished in grand style for equity investors as the S&P 500 gained +7.6% for the month (total return) while posting its 5th consecutive up-month.  Since falling to a bear market low in early March, the stock index has raced ahead by +47.3%, its 2nd best recovery off a bear market low in the last half century.  With 5 months to go in 2009, the index is up +11.0% YTD.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).  
 
The global nature of trade and commerce was evident in high-level discussions between the US and China last week.  Chinese officials sought and obtained a promise from Treasury Secretary Tim Geithner that the US will take the necessary steps to reduce our ballooning budget deficit - once our domestic recovery is firmly in place.  The USA's role as the "engine of growth" for the world may have diminished somewhat in the last year, but how well and how quickly the US economy recovers is key to job growth not only here but in many countries around the globe (source: Treasury Department).   
 
Congress will take the health care debate from Washington to Main Street in the coming weeks.  Both the Democratic-led House and Senate are targeting 9/15/09 as the new deadline for final legislation.  The House began its summer recess last Friday and the Senate adjourns later this week (source: Senate).