Dear Investor,
Core PCE inflation, an important measure for the Federal Reserve, rose by 2.9% in July, in line with expectations. This fueled discussions about a possible interest rate cut in September, especially after Fed Chairman Powell's speech at the Jackson Hole Summit, in which he hinted at a cut on September 19. The stock markets reacted positively to this, with the SP-500 Index closing the month with a gain of 1.9% as a result.
The news of weak job figures on August 1 put a lot of pressure on stock prices. The month therefore got off to a bad start with losses on the US stock markets. The SP-500 Index managed to steadily post slightly higher prices. ESBH closed the month with a minimal loss of 0.11%. For the year as a whole, there is now a gain of 18.13%.
September offers potential for a rally due to Fed easing, but volatility dominates due to import tariffs and labor market weakness.
Sincerely,
Henry van Ginkel