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July saw a slight uptick in the major U.S. market indices, but the Dow remains in negative territory for the year.
Overseas, emerging markets were hammered over 5% after the Chinese market's collapse.
In Europe, Greece finally realized their chips were all used up and agreed to a bailout deal. This happened only one week after a referendum showed a whopping 60% majority voted against Germany and the ECB's bailout terms. As we had previously mentioned, in our opinion, it was all posturing for political purposes--in the end Greece would have no option but to agree to the terms.
The next few months will have us on alert. August through October is typically treacherous, with most of the market's largest downturns happening (much like last year) in October. Already, as we start August, we are seeing the Chinese begin to devalue their currency, which has rattled world markets. A devalued currency against our dollar would make Chinese goods cheaper to export as opposed to our exports, which are already more expensive due to our stronger dollar. This has already resulted in a slowdown in revenue for many companies that do business overseas, including the media darling Apple, which had a good earnings report, but has been down on the news that their Chinese sales are declining.
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Our Management Philosophy
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Limit downside risk and provide clients a reasonable rate of return over a market cycle.
With over five decades of combined money management experience in South Texas, you can be sure that Walter and Anthony Reyna have seen it all. This father-son pair built and developed Walter J. Reyna Inc. on the importance of hard work and strategic planning and continue to implement these core values in their business today.
The Reynas believe that wealth accumulation and protection are the result of exceptional planning, not luck. Visit our website to learn more.
Walter J. Reyna, Inc.
5315 North McColl Road
McAllen, Texas 78504
956.682.4196
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The other thing we will be keeping an eye on is the Fed. The Fed has been signaling a raise in interest rates for almost two years now, but has not taken action. Many were thinking September, and while it could still happen, it does not appear to be the case. Now, with China's "currency war," it may limit the ability of the Fed to make a move this year at all. Some argue that to strengthen our dollar more, while China is debasing theirs, could hurt our already fragile economy drastically. Therefore, it will be interesting to see what the Fed signals in its coming meetings.
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Visit our website to learn more.
For more information about your portfolio performance, please refer to your personalized statements or contact us. Regulatory restrictions prevent us from reporting personalized performance data in this newsletter. See below for important disclosures.
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(1)The S&P 500 Index is representative of domestic markets and includes the average performance of 500 widely held common stocks. Individuals cannot invest directly in any index and unlike investments; the S&P 500 Index does not incur management fees, charges, or expenses. (2) All Statistical information, investment category determinations, and economic data retrieved from www.bloomberg.com. Past performance is no guarantee of future results and all investment strategies involve the risk of financial loss.
This publication is proprietary and limited to the sole use of Walter J. Reyna, Inc. clients. Client portfolios are designed for the moderate investor but are actively managed on a monthly basis and may not follow traditional risk adjusted asset allocation models. Walter J. Reyna, Inc. maintains full discretion over said accounts and manages as deemed necessary. Clients with questions about the fees associated with their discretionary advisory account should refer to their advisory agreement. The information contained herein is for illustration purposes only. It is not necessarily complete, does not include client directed investments, and its accuracy is not guaranteed by Walter J. Reyna, Inc. All clients should reference their periodic statements for accuracy. All clients needing additional information about holdings in the portfolio, including the objectives, risks, asset class and costs associated should refer to their respective prospectus. If you have received this communication in error, please notify us immediately by e-mail or telephone. Neither the information, nor any opinion expressed constitutes a solicitation nor investment advice, for the purchase of any future security referred to in the Advisory Newsletter. Investments offered through Registered Representatives of Lincoln Financial Securities Corporation, member SIPC. Lincoln Financial Securities Corporation and Walter J. Reyna, Inc. are not affiliated.
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