July Analysis: A positive July ends on a sour note.

The S&P 500 rose an impressive 3.72% in July, supported by strong economic and earnings growth as well as a slight lessening in trade tensions. Via Nova’s outlook remains positive, but near term, the dog days of summer may weigh on stocks particularly in a mid-term election year.

The S&P 500, supported by continued favorable economic and earnings reports, weathered a roller coaster ride of international trade and political instability announcements to finish May with a 2.41% gain.

• The S&P 500 finished nearly flat in April.  Bonds continued to struggle.

• The facts are positive: economy, earnings.

• The fears are persistent: trade, Fed policy.

• Via Nova’s outlook for the economy and stock market remains positive, but fears are likely to persist near term.  Climbing the “wall of worry.”

• Rough sailing after relative calm, but stocks edged out bonds in Q1.
• What’s going right?
• What is troublesome?
• Via Nova’s outlook for the stock market remains positive, but increased volatility could be the new normal.